You see it in every business paper or magazine. You hear it on every financial talk show. You are deluged with facts presented as certainty: China will be the number one economy. The BRIC countries (Brazil, Russia, India, China) will continue to outstrip the developed world in growth for decades to come. Emerging markets are therefore a sure bet for making money and should be part of every portfolio.

But is it true?

Emerging markets undoubtedly present one of the most exciting investment opportunities that has occurred over the last twenty years. But so was the U.S. housing market if...