Experts predict that emerging-market economies will increase 6% in 2006, as opposed to a GDP growth of 3% in developed markets. Such a lofty prediction could entice more investors to plow their money into emerging-market stock funds, particularly in light of their stellar returns of 56% in 2003, 24% in 2004 and 16% year-to-date, The Wall Street Journal reports.

Certainly, developed countries like the U.S., Europe and Japan will face problems with an aging population, while the developing world does not have such a dilemma as of yet. Emerging market stocks are also really cheap, as they trade at a 25% to 30% discount to U.S. stocks, according Morgan Stanley Capital International.

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