Will emerging economies stay buoyant?

Increased risk appetite drove emerging markets to make strong gains last year. But there wasn't joy everywhere - here are the best emerging markets to invest in in 2013.

When global stockmarkets have a good year, emerging markets tend to do even better. So it proved in 2012. World markets, as measured by the MSCI World Index, rose by 13%. The MSCI Emerging Markets Index gained 15%. This is because emerging-market equities are driven mainly by global risk appetite rather than local fundamentals.

If investors feel upbeat and with unprecedented amounts of printed cash around, they were very cheerful in 2012 they will buy risky assets, such as emerging-market stocks.

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