"I'm hoping when the next big correction comes I'm smart enough to buy some of them back," Rogers, chairman of New York- based Beeland Interests Inc., said in an interview in Singapore Monday. "They're all over-exploited, so I've sold out."

The Morgan Stanley Capital International Emerging Markets Index has risen twice as fast as a measure of developed countries this year, as investors bet sustained global economic growth will bolster profits. Rogers said he remains bullish on commodities, including agricultural products and metals.

The emerging markets index has jumped 17 percent in 2007, compared with the 8.2 percent gain in the MSCI World Index of developed economies. Shares in developing countries have outperformed every year since 2001, with benchmarks in Brazil, China, India and Malaysia all touching records this year.

"Valuations are not super-attractive as these markets have run up quite a lot," said Christopher Wong, who helps manage $25 billion at Aberdeen Asset Management in Singapore. "If markets continue to go up like this, we do expect a correction."

MBAs on Airplanes

"I've sold out of nearly all the emerging markets," Rogers said, without naming them. "Right now, there are probably 10,000 young MBAs on airplanes flying around from one emerging market to another."

The International Monetary Fund in April forecast that the world economy is expected to grow 4.9 percent this year, as expansion in developing nations helps to compensate for a slowdown in the U.S.

China, the world's fastest-growing major economy, is estimated to grow 10 percent this year, while India's economy may expand 8.4 percent, the IMF said.

"The only one I didn't sell was China," said Rogers. "I don't ever want to sell China, but if China doubles again this year, then it's a full-fledged bubble and I'll have to sell."

China's benchmark CSI 300 Index fell 4.2 percent last month, the first monthly decline since July 2006. Still, the index almost doubled in the first five months of this year, building on a 121 percent advance in 2006.

China Gains

Those gains have helped make China the world's most expensive major stock market. The CSI 300 is valued at about 41 times earnings, about twice as much as the MSCI Asia Pacific Index. The Standard & Poor's 500 Index is worth 18 times earnings, while Europe's Dow Jones Stoxx 600 Index is valued at about 15 times.

Concerns that emerging markets are overvalued may be slowing investors' enthusiasm.

Global emerging market funds drew $696.4 million in the first half of 2007, according to estimates by Boston-based Emerging Portfolio Research Inc. That's slowed from $6.53 billion a year earlier.

"I'm long nearly all agricultural commodities, about 20 of them, because that's the place to be," said Rogers. "It's better than the stock market, the bond market or any other market that I know of right now."