This Great Graphic, created by Bloomberg, depicts the MSCI equity index for the developed countries (orange line) and the emerging markets (white line).
![The Developed And Emerging Markets The Developed And Emerging Markets](https://d1-invdn-com.akamaized.net/content/picd7f8af661c4aac2442b5f68708ad539c.png)
The charts begins at the start of last year. In the first several months of 2013, DM outperformed EM. The big EM sell-off coincided with first hint from the FOMC about tapering. EM recovered and tracked the DM until October. A new phase of divergence, with DM outperforming again lasted into early March.
Since mid-March the performance is a study in contrasts. MSCI emerging market equity index is up about 8.4%. During the same time the developed markets index is up a little less than 1%.
In the foreign exchange market over this period, the dollar-bloc is the strongest. The AUD/USD is easily the best performer rising 3.3% against the USD, followed by the USD/CAD (1.7%) and the NZD/USD (1.5%). The GBP/USD is a distant fourth, up 0.4%, and all this was recorded today. The other major currencies have lost ground against the dollar this period.
Among the emerging market currencies, the Brazilian Real (BZF) (5.8%), Columbian Peso (5.5%) and Turkish Lira (5.5%) have led the advance. The Chilean peso (3.5%) and the Russian rouble (3.0%) round out the top five. As with the majors, the high yielding/high beta currencies has generally outperformed.