Global investors should follow the growth; and when it comes to equities, Asian markets are hands down the best destination for your hard-earned dollars.
Asia's macro story remains strong, though many investors distrust its beguiling simplicity. The region's strength revolves around accelerating economic growth in two of the world's most populous nations, China and India.
The latest projections call for Asian economies to contribute more than 50 percent of incremental global growth in 2010.
Growth Portfolio holding China Mobile
) offers defensive growth and has turned in a strong performance this year.
The world's largest wireless telecom operator, China Mobile boasts a customer base of more than 250 million people and controls 40 percent of the market.
A growing client base generates reliable cash flow, while the company's bulletproof balance sheet is another attraction.
In the first half of 2010 China Mobile generated USD18.7 billion in cash from operations, 13.8 percent higher than a year ago.
With penetration in rural markets increasing, China Mobile should deliver strong revenue growth over the next few years. Yielding 3.5 percent, China Mobile is a buy up to 60.HDFC Bank
) is India's second-largest private-sector institution; the pick has been one of the Growth Portfolio's top performers, returning 65 percent since recommendation.
Most of HDFC's new branches are in non-metropolitan, under-banked regions, the result of a regulatory mandate that has paid off in the form of higher core deposits.
All told, 62 percent of HDFC Bank's branches are outside India's nine biggest cities.
The company is one of the best-run financials in Asia, and management has a strong track record of producing steady growth without taking on excessive risk.
That being said, the stock has had quite a run; investors sitting on big gains may choose to take some profits off the table. A great long-term bet on growing domestic demand, HDFC Bank is a buy under 170.
Although emerging markets such as China and India garner the most attention, South Korean equities have also enjoyed a banner year.
South Korea's domestic demand story has returned to life. The retail sector posted strong same-store sales in July, with the various categories registering growth of 8 to 11 percent. And this uptick isn't a credit-induced aberration: Household incomes continue to improve.
And corporate earnings don't appear to be slowing; second-quarter earnings are, on average, 30 percent higher than a year ago.
South Korean technology and automobile companies have clearly emerged among the winners in the latest global economic bounce; all these years of brand cultivation and the quality improvements are paying off.
In addition, inflation remains below 3 percent--low by South Korean standards--and interest rates are steady.
But historically low valuations are the most compelling reason to be long the South Korean market. The market still trades at 8 to 9 times expected 2010 earnings, well below the historical average of 13 times earnings.
On the risk side, the South Korean economy isn't immune to a potential global credit crisis. Foreign-exchange rates will also play a big role in the country's export economy.iShares MSCI South Korea Index
), the easiest way to add exposure to South Korea, is a buy up to 52 and should fare well through year-end.