Emerging markets have become the new hot spot for mutual fund companies and investors looking to diversify their portfolios internationally, but analysts say even countries like China may be too correlated to the U.S. economy to escape a global recession-prompting some to look further, to new frontiers.

"The strongest economy in the world is the United States, but if there are problems in the U.S., it affects the world," said Dunny Moonesawmy, head of research for western Europe and the Middle East for Lipper.

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