Chad Deakins, portfolio manager of the $235 million RidgeWorth International Equity Fund ( STITX), thinks emerging markets will also benefit from the weak currency outlook in developed economies. "We think the currency return to U.S.-based investors is going to be a big part of the total return from emerging markets for those investors," said Deakins. "The developed world will print money which will lower the value of those currencies relative to some of the emerging markets which have lower debt to GDP ratios, and don't need stimulus to have stronger GDP growth and better earnings growth." Meanwhile the U.S. is also stepping up pressure on China to let its currency appreciate, as developed economies' exports are hurting from the "artificially low" value of the Yuan. Asian countries are also likely to encourage a rise in their currencies, as they battle raging inflation in food prices, according to Dailey. ( To listen to Dailey's views on why China will let its currency appreciate click on the audio button below.)
Here is a look at what countries and themes within emerging markets are expected to do well in the near future.