The Myth of the Emerging Markets

In a time of severe crisis in the global stock markets a possible portfolio solution  might be going to emerging markets, characterized by fast growing economies .
In an article contained in the English magazine "Investors Chronicle"  there is an analysis that debunks the correlation between the growth prospects of the economies of emerging markets and stock market performance.
It parses the growth of Gross Domestic Product (GDP) between 1993 and 2010 compared with the performance of stock market prices for 44 economies, including 20 emerging markets.
It does not show any significant correlation between economic growth and performance of stock markets. The correlation for all 44 countries is a negative by 0.13. If you exclude China (characterized by an increase in GDP in the years in question amounted to about 10% on average, but with a negative performance of stock market that reflects the collapse in the '90s), the correlation becomes positive, but only with a + 0.04.
Considering only the developed economies, the correlation was negative by  0.06. Among the emerging economies is less if you include China -0.39 and -0.12  excluding it.
From these statistics is thus apparent that economic growth does not mean, statistically speaking, growth in equity markets. This means that buying in emerging markets simply because they are destined to grow may be wrong.
The fact is, beyond the statistics expressed in the editorial, that the emerging countries represent a market for those who want to develop aggressive policies to diversify the portfolio, aware of the risk that such choice involves ( the volatility of the stock markets of emerging countries, expressed dall''indice MSCI Emerging Market, is 31.4%, 19.4% against the S & P 500), and therefore expectations of earnings (but also losses) higher.