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My personal view is that the emerging markets are very important to my portfolio for a couple of reasons.
One is that these countries are making much of our cheap imports. So rather than our money flowing out to enrich them, let's own the companies over there so profits come back as dividends for us.
Also, foreign investments act as a hedge against the devaluation of the dollar. If our dollar loses value against other currencies, then we get more dollars back from dividends after currency exchange.
If you are rebalancing your portfolio regularly, then you are not letting your exposure get too big, so profit from the EM are spread back to your other, less volatile holdings.
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