Try 'Most Powerful' Emerging Markets: Strategist

Emerging market stocks have diverged from Western stocks, according to Bob Parker, vice chairman of asset management at Credit Suisse.

The "most powerful" EMs will boost stock markets higher than their current levels in the third quarter, Parker said Wednesday.

The growth recovery that we have seen since late March/early April in a number of emerging markets, notably in China and more recently in India, is sustainable, Parker said. The Chinese will achieve their 8% growth target, he added.

There has been a divergence in emerging-market stocks from developed-market stocks since March, Parker noted. There has been a raft of emerging-market stocks which are already up close to 50 percent year-to-date, he added.

"We've seen a very strong acceleration in certain markets over the last month, notably India and Russia," Parker told CNBC. "Russia is the top-performing market year-to-date."

Brazil and China are the most attractive emerging markets, according to Parker.

There will be a period of consolidation for emerging markets for the rest of May, going into June, because the stock market is "technically overbought," he predicted. "I do think investors will not chase these quite dramatic rallies."

Going into the third quarter, Parker said he sees a global second leg of the equity market rally, which will be led by emerging markets whose growth numbers and corporate earnings numbers "are the most powerful."

Stock markets' levels will be higher in October/November than where they are currently, Parker predicted.