Emerging Markets Stocks 2013: Don't Miss These Next Waves of Growth

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Amid a turbulent market environment in 2012, emerging markets stocks have been, well, turbulent.

Some markets (Colombia, Mexico and Thailand to name a few) have performed well. Others have disappointed (Brazil and Russia stand as two laggards.)

But as Money Morning Global Investing Strategist Martin Hutchinson explained last week, economic growth has shifted to these developing economies.

"The IMF's World Economic Outlook projects anemerging marketsforecast with growth at 5.6% in 2013. That's down slightly from 2011 but far ahead of the measly 1.5% growth projected in the "advanced economies,'" wrote Hutchinson in his 2013 emerging markets forecast. "That means investors need to focus heavily their investments inemerging markets, as we have done successfully over the past few years."

Plus, there is no getting around the fact that emerging markets stocks are cheap. The broader emerging markets universe currently trades at a 20% discount to the developed world. And with that valuation discount comes the potential for growth.

But just because valuations are attractive that does not mean all emerging markets stocks are. It pays to be hyper-selective with this asset class.

That's why we've weeded out the weak and come up with some of the most promising emerging markets stocks for 2013.

Emerging Markets Stocks: Updating an Old Theme

One of the most pervasive themes during the growth of emerging markets has been that of the consumer.

Some U.S. investors stick to U.S. brands like The Coca-Cola Co. (NYSE: KO), Starbucks Corp. (Nasdaq: SBUX) or Yum! Brands Inc. (NYSE: YUM) that appeal to consumers in the developing world.

While those are a great way to begin your emerging market exposure, there's a way to grab even bigger returns.

Investors can increase their exposure to developing world consumers through local brands servicing the burgeoning domestic demand stories.

Enter the EG Shares Emerging Markets Domestic Demand ETF (NYSE: EMDD).

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