Emerging-market equity investors had a tough time in the first half of 2011. But will the second half offer richer pickings?

The MSCI Emerging Markets index is down 0.4% so far this year, underperforming the developed-market MSCI World index which is up 4.0%. Middle Eastern stocks have been hit by regional political turmoil, Eastern Europe has been affected by the eurozone crisis, and Latin American and Asian stocks have suffered as inflation and growth fears combined. In contrast, developed market equities initially rallied on hopes for US growth and have suffered less even amid rising risk aversion.