Investment allocation among different asset classes and national markets is the major determinant of a portfolio's return.

While correlations have increased between different national markets, there have been vast differences in the performance of those markets. In the years ahead, three important factors are likely to have a large impact on the performance of the stock markets in different countries.

These are: the debt levels of both governmental and private units which will play an important role in the ability of different economies to sustain growth; demographic trends which will have a strong influence on the ability of a national economy to generate non-inflationary growth; and the end of cheap, abundant resources which will cause an increase in their value and favour economies of nations relatively rich in those resources. Investment policy has paid too little attention to these crucially important long-run trends.

David Fuller's view Burton Malkiel's views will resonate with most veteran subscribers. For occasional visitors to this site, this column from the FT will touch on many of Fullermoney's secular themes, which you can also review in our historic Archive.

While I prefer the term growth economies to emerging markets, I agree with all of Burton Malkiel's points above.

We want to invest in growth markets but we do not want to pay too much for them. The current bear market is rapidly improving valuations and creating another buying opportunity. At yearend 2010, growth markets were trading on higher valuations than so-called developed markets. That situation is in the process of reversing.

Remember, wealth is created in down markets and realised in up markets.

Fullermoney also likes successful multinational companies leveraged to the global economy. Most of these have their origin in the west but make an increasing proportion of their profits in the East. Many of the best are also 'Dividend Aristocrats'.