Is the Emerging-Markets Rally for Real?

A look at whether emerging-market stocks are rising on strong fundamentals or are a sign of another bubble, in this video edition of The Business Week

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Stock markets in China and Brazil continue to outperform U.S. markets such as the Standard & Poor's 500-stock index by a significant margin this year. The MSCI Barra Emerging Markets Index is up 45% year-to-date, quadruple the performance of American stocks. BusinessWeek Senior Writer Roben Farzad and Assistant Managing Editor Chris Power discuss what's behind the emerging-market gains and whether they can last.

Also, we look at how Microsoft's search deal with Yahoo! (YHOO) could give it the ammunition to effectively compete with Google (GOOG), why a better than expected GDP number for the second quarter may mean the recession is coming to an end, and the economic week ahead.

To go straight to our feature on emerging markets, click here.

To go straight to our look at the economic week ahead, click here.