Where the Buys Are
Emerging markets are cheaper than their developed counterparts with far more growth. Earnings for the MSCI Emerging Markets index are expected to grow at 15% over the long term, versus 12% for MSCI World index.
|Comments: Latin America’s economic dynamo selling at relatively low valuation.|
|Comments: Concerns of hard-landing for economy could be priced into stocks.|
|Comments: Should benefit if oil stabilizes, and very cheap.|
|Comments: Some analysts expect 2011 GDP to grow a sturdy 5%.|
|Comments: Reasonably valued, big commodity exporter.|
|Comments: One of worst-performing markets this year but GDP still growing strong.|
|MSCI Emerging Markets||41,204.16||-14.5||-4.6||1.1||12.6||N/A||1.9|
|Comments: Impressive GDP growth, well-run economy merit premium valuation.|
|*Annualzed. **Estimated.||Sources: Bloomberg; MSCI|
China, Brazil and South Korea, it bears noting, are among the biggest and most liquid markets in the developing world.
It’s Time to Buy
CHRISTOPHER C. WILLIAMS
Barron’s AUGUST 20, 2011