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Sunday, June 23, 2013

The Financial Times on Emerging Markets

I gave my views on this subject in the last post. Here is John Authers of the FT

On Monday: Brave bargain hunters should look to emerging markets
By John Authers
Latest sell-off has created a few bargains for long-term investors
It is time to start combing the wreckage. That does not entail any bold prediction of an end to the sell-off that became frighteningly general following the Federal Reserve’s intervention last week. Timing is always difficult. But this sell-off has now lasted long enough to create a few bargains for those who can afford to hold on to their investments for a while.
The greatest factor in how investments fare in the long run is how cheap they are when bought. And on that basis, there is a case for emerging market equities.

Using the ubiquitous MSCI indices, and judging by price-to-book ratios, emerging markets are selling at their deepest discount to developed world stocks since September 2005

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