"We’ve long been fans of emerging market stocks," says Timothy Lutts. In The Cabot Market Letter the advisor highlights some of his favorite bets on global stock markets.

"We are attracted to emerging markets for one simple reason—the economies of countries like China, Brazil, India and others are almost assured of growing at a faster rate in the years ahead than the U.S.

"We also think investor perception of emerging market stocks is sure to rise over time, as people get more comfortable with the idea that these countries are stable and have acceptable governments.

"Of course, when fear overwhelms greed, as it did during the bear market, emerging market stocks can be a terrible place to invest; most fell 75% from peak to trough!  But now, as the world economy is showing signs of bottoming out, money is once again finding its way to the fastest growing places on the planet.

"The iShares MCSI Emerging Markets Fund Index (ASE: EEM) gives a good, broad perspective of the emerging markets. It etched a big bottom in the 18-20 area and has decisively moved to new multi-month highs recently.

"Importantly, the rising relative performance line versus the S&P 500 is also at new multi-month peaks, a sign that buyers are buying these stocks more eagerly than U.S. big caps. Long story short, if this bull market persists, expect emerging markets to help lead the way.

"How can you make money from them?  The simplest way is to buy a broad fund that tracks one or more emerging markets, such as EEM. 

"A couple of others to consider are the Brazil iShares (ASE: EWZ) or the Powershares Golden Dragon Fund (NYSE: PGJ), which tracks the performance of all U.S.-listed Chinese stocks.

"You can also go into individual equities; we’re high on the Chinese online gaming sector, with two pure plays in the Model Portfolio -- NetEase (NASDAQ: NTES) and ChangYou.com (NASDAQ: CYOU).

"There are also many potentially exciting commodity-related stocks found in Russia and Brazil. Much of the marginal demand in oil, copper, steel and even gold is being driven by emerging market economies.

"Thus, the DB Commodities Index (NYSE: DBC), while not showing much accumulation is something to keep an eye on.

"Emerging market stocks were some of the biggest winners of the last bull market, and following the bear market wipeout, they’re beginning to act like leaders again. Don’t ignore them!"