Clearly, the Philippines, South Korea and Thailand are now serious contenders for investor attention.
In its latest world outlook report, the IMF predicted emerging countries would average growth of 4.5 percent year-on-year in 2013, down from an estimate of 5.0 percent growth three months earlier. It also cut its outlook for emerging world growth in 2014, to 5.1 percent.
Have global investors been missing the emerging market right next door?
The UN's trade and development agency UNCTAD said in its annual survey of the global economy and the prospects for poorer nations that developing countries would grow 4.5 to 5 per cent in 2013 while the sputtering economies of the rich world would manage just one percent growth.
One way or another, the slowing growth story in countries like China, Brazil and India is turning out to be the Achilles heel of Europe's big corporations this reporting season - from banking to whisky to food and pharmaceuticals.
Emerging countries such as Brazil, Russia, India and China, often referred to as the BRICS, have dominated stock markets with stellar gains in the past decade, but their performance year-to-date has been miserable.
Economic sentiment survey, surveys around 11,000 global manufacturers and service providers, found that business optimism darkened in the first half of this year, dropping back to levels not seen in four years.
After a 14 percent decline in the MSCI emerging markets index this year, the index is trading on just 10 times forward earnings, below its 10-year average of 11 times and cheaper than the S&P 500 on 14 times, according to recent numbers from JPMorgan Asset Management.
Credit Suisse AMC's Robert Parker believes that emerging markets will have to wait till September to outperform, tough their downside risk has been reduced
Goldman Sachs says it has ended a recommendation to buy a basket of US stocks with the highest sales exposure to Brazil, Russia, India and China (BRIC) and instead prefers US firms with most exposure to the domestic market – just one more sign that sentiment towards emerging markets is fading fast.
Speaking to CNBC-TV18 on US market and emerging markets like India and China, Robert Doll of Nuveen Asset Management advises investors to be patient as the US economy will recover. He added that India and China were interesting bets.
According to Dilek Capanoglu, chief investment officer and manager, Global Emerging Markets (EMs) portfolio-Allianz Global, investors are turning a bit skeptical on BRIC (Brazil Russia India China) because of the recent underperformance of their markets.