Emerging market equities returned 75 per cent in dollars in 2009, outperforming developed market equities by about 50 per cent. Over the past decade they have returned more than 100 per cent in dollars with dividends reinvested, versus negative returns for developed market equities.

At Morgan Stanley, we estimate that emerging market economies will increase their gross domestic product by 6.5 per cent in 2010 against just 2 per cent for the advanced economies. But that is not the reason we expect further outperformance of emerging equity markets.

In a recent Insight column in the Financial Times ("Busting the myth of Brics"), Peter Tasker argued that strong GDP growth in emerging markets was not a reason to invest in their stock markets. He cited academic work showing the lack of positive correlation between GDP growth and stock market returns. Long-term bulls of emerging stock markets are also aware of this work. Rather, we have focused on the ability of companies in emerging markets to outperform their developed peers, selling both globally and into local markets.

Currently, the trailing return on equity (ROE) for the MSCI EM benchmark is 12 per cent versus 7 per cent for the developed markets MSCI World benchmark. On our estimates, 2010 is likely to be the 10th year in a row when the ROE of emerging market companies is superior to those in developed markets. In fact, ROE in emerging markets has already troughed well above the prior cycle low, while developed markets may currently be troughing at a level that is well below. For this record one is asked to pay a 2.1 times price to book multiple and a trailing price/earnings multiple of 18 times, which is a 35 per cent discount to developed markets. The forward p/e multiple on consensus earnings is 14 times. These valuations are hardly in bubble territory and well below peaks in 2007, 1999 and 1993.

David Fuller's view You may be old enough to remember when information deprivation was mankind's biggest problem. Fast forward to the personal computer and a high-speed internet, and it is information overload which challenges us today. Of the two, overload is vastly preferable but how do we sift through it all and find informed opinion? With help, I suggest.

Eoin and I are voracious readers but we barely scratch the surface in terms of what is out there. Then there is the judgement call in terms of what is informed commentary, rather than rehash, misinformation and subjective bias. Fortunately, we are helped by the Collective when subscribers forward reports and articles which have presumably impressed them.

I can say without hesitation that Jonathan Garner's column on emerging markets is one of the most informative that I have seen. Is he right? Time will tell but I think so, mainly because his fundamental conclusions are confirmed by our observation and technical studies.

One caveat: emerging (I prefer progressing) markets have always been high beta.