Emerging market stocks set to capture spotlight in 2012

If you were burned by emerging market stocks last year, you might want to give the relationship another chance in 2012. The stocks are doing pretty well so far this year, and analysts point to multiple reasons the gains should continue.

During the first four weeks of the year, Vanguard's MSCI Emerging Markets, the largest emerging market stock index ETF, was up nearly 11.6 percent - more than double the 5 percent return for the SPDR S&P 500.

The upswing indicates to investing experts that a drop of almost 20 percent in emerging market stocks last year wasn't a bubble bursting.

"After burning investors last year, we expect the BRIC countries to be among the top-performing markets in 2012," said Ned Davis Research analyst Anthony Welch of the four dominant emerging markets: Brazil, Russia, India and China. "We think this is a good time to add to exposure to those markets." Read more>>