Opportunity in Asian Emerging Markets ?

WSJ notes

Better Value Than U.S. Stocks: Asian Shares Hit Fire-Sale Valuations

Regional stock valuations are at their lowest levels in years

Compared with forecast earnings, regional share valuations are at their lowest levels in about five years, according to a FactSet index covering thousands of Asia-Pacific stocks. They trade at about 12 times expected earnings for the next 12 months, while FactSet shows U.S. stocks trade at about 15.5 times, roughly in line with their 10-year average.

Set against free cash flow, the stocks look even better value. On that basis, Asian equities are at their cheapest levels in more than a decade, below even lows hit at the depths of the financial crisis.

Despite a dismal 2018 (GMF emerging markets ETF -14.2 vs-4.6 for SP 500  ) emerging market Asian stocks outperformed the US in the fourth quarter (-6.4% vs -13.8% for  sp 500) and are up 2.0% ytd (3% sp 500).

GMF is very sensitive to short term news reports related to China's domestic economy and US Chinese trade relations. For long term investors these can be considered "noise" and declines in response to news may turn out to be excellent entry points for long term investors.