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Real Time Insight

Investors will remember 2013 as a great year for stocks in the developed markets. Japan led the way as its Nikkei 225 equity index rose a stunning +56.7%. The S&P 500 in the U.S. posted a remarkable +29.6% price return. And Europe's Stoxx 600 index jumped an impressive +17.4%.

But 2013 was not a memorable year for the emerging markets. In China, the Shanghai Stock Exchange Composite Index slid -6.7% for the year. Brazil's Bovespa Index dropped -15.5%. And the MSCI Emerging Markets ETF (EEM - ETF report) lost -3.6%.

There are several reasons for developed market outperformance in 2013. One major factor was unprecedented monetary stimulus from the central banks of Japan and the United States. And a weak commodities market hurt the economies of several resource-rich emerging markets. But now valuations for many emerging markets look down right cheap, especially compared to many developed markets.

So do you think the developed markets will outperform again in 2014? Or will equities in emerging markets shine brighter this year?

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