Attempts by emerging-market central banks to battle inflation are holding back their equities, Gill said. Brazil's central bank lifted its benchmark overnight rate by 50 basis points, or 0.5percentage point, to 11.25% on Jan. 19.

India raised rates to a two-year high on Jan. 25. China has ordered lenders twice this year to set aside more money as reserves. Russia increased banks' reserve requirements for the first time since 2009 on Jan. 31 to stem the fastest inflation in a year.

Dangerous Levels

The World Bank said Feb. 15 that global food prices have surged to dangerous levels, pushing 44 million more people into extreme poverty since June. The 2.9 billion people in Brazil, Russia, India and China spend about 19% of their income on groceries, compared with 6% in the U.S., according to data compiled by London-based Euromonitor International. Corn futures surged 94% in the past year through yesterday, and wheat jumped 70% after drought and floods damaged crops from Russia to Argentina.

While emerging-market policy makers are attempting to restrain growth, they are helping the long-term health of their nations, according to Jason Hsu, chief investment officer of Research Affiliates LLC, which oversees $61 billion in Newport Beach, California.

"Emerging-market central banks have been proactive, much more conservative in their willingness to push the curve of prosperity to the future," he said. "These are responsible policies as long as it's not done to an extreme. In the long run, it could provide a better environment for capital investment."

Inflation Disparity

The inflation disparity between developed and emerging markets is clearer in the stock market than anywhere else. The Morgan Stanley Inflation Basket of 77 U.S. companies has risen 24% since Oct. 15, when the New York-based bank created the index of stocks, including raw-material and energy companies, that are poised to benefit from higher prices. The S&P 500 gained 14% since then.

Producers of oil, natural gas and coal in the MSCI Emerging Markets advanced 2% this year through yesterday. That compares with the 11% rally in MSCI World Energy Index.

Archer Daniels Midland, the world's largest grain processor, climbed 25% this year. The Decatur, Ill.-based company that got 65% of fiscal 2010 revenue from the U.S. and Germany beat analysts' profit estimates on Feb. 1 after record grain exports.

Deere, Chaoda Modern

Deere, the world's largest farm-equipment maker that gets 65% of sales from the U.S. and Canada, raised its 2011 forecast last week as higher crop prices boosted North American sales of tractors and combines. Shares of the Moline, Ill.-based company have risen 14% this year.