These Two Emerging Markets Are Perfect for Value Investors: THD, EPI

Value investors tend to be conservative, while emerging market investors are often thought of as aggressive.

Many investors place these limits on themselves. Value investors might only consider large-cap, dividend-paying stocks, for example. In doing so, they could be severely limiting their profits.

When looking at emerging markets recently, we noticed two countries offering deep discounts.

Value is usually found in a country's stock market when the economy turns down. That is certainly true for Thailand. The country is in a mild recession after two consecutive quarters of GDP contraction. Economists expect the recession to be short-lived and are expecting Thailand to recover in the second half of this year.

Historically, the end of a recession has been a profitable time to buy because stocks are trading at bargain levels and the recovery should help prices recover quickly. iShares MSCI Thailand Capped Investable Market (NYSE: THD) is trading with a price-to-earnings (P/E) ratio of 10, well below its five-year average near 15.  (more)

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