Source: Barclays Research
Some of you are wondering, with all of the negative media coverage, why in the world should one buy Emerging Market equities?
Well, the answer is precisely because everyone dislikes them so much. Even more importantly, GEM Equities are starting to look extremely attractive from long term valuation standpoint. Last week, the overall MSCI EM Index traded at 1.4 price to book value, cheapest since the depths of the Lehman panic in 2008. As we can see in the chart above, that is usually a buy zone (even though I personally think that P/BV could fall closer towards 1 before the major low is in). (more)
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