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
No comments:
Post a Comment