Emerging markets just shook off their “lost decade” in spectacular fashion. After years beneath the shadow of Uncle Sam’s bull run, the world’s developing nation stocks notched their strongest gains since 2009. So far this year, an MSCI benchmark of these markets is up 28%, handily outperforming the S&P 500’s 15% return as the global investing playbook flips.

• Specifically, the Emerging Markets Internet ETFEMQQ
  is up nearly 34% this year amid booming chipmaking demand — while local-currency government bonds also staged a 16% rally.
• Market-wise, Japan’s political shakeup lifted the Nikkei 225 by 4% on Monday — joining the fortunes of Korea and Taiwan, while India’s Nifty 50 lags behind peers.

Behind the boom: Even after this year’s rally, emerging-market stocks still look like a bargain. The MSCI EM index trades at just 14x forward earnings, compared to 23x for the S&P 500 — and that valuation gap is a significant draw for portfolio managers like Vivian Lin Thurston. A weaker dollar is also helping, as it eases the burden for developing nations to service their debt. While widespread rate cuts on the horizon are sweetening the deal, these new kids on the block still have plenty to prove.