Words that are like music to the ears of relative strength managers (via Equities in Smaller Emerging Markets Soar, FT):

More broadly, the divergence of emerging markets is a sign that investors are increasingly differentiating between countries and even industries in the developing world, rather than lumping disparate countries into one homogenous group, says Ruchir Sharma, head of emerging markets at Morgan Stanley’s asset management arm.

“We’re done with the era where all emerging markets do well,” says Mr Sharma, author of a book, Breakout Nations, on the next clutch of promising developing countries. “We’re finally starting to see a wide divergence of performance of these markets.”