The new case for emerging markets: A dim outlook for developed economies

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Open this photo in gallery: Developing countries such as Taiwan, China, Brazil and Poland are rising forces in the global economy.GREG BAKER/AFP/Getty Images Emerging markets are having a moment. So far this year, they have produced returns that leave Wall Street in the shade. Is this impressive performance just a blip? Skeptics will point out that emerging markets have generated mostly disappointing results over the past 15 years. That lacklustre history suggests we shouldn’t get excited about an upbeat few months. Optimists, though, can argue that fundamentals are finally shifting in favour of up-and-coming economies. Their best-case scenario is that...