Emerging markets may seem cheap with the MSCI EM Index (EEM) currently 22% below its median...

|By:, SA News Editor

Emerging markets may seem cheap with the MSCI EM Index (EEM) currently 22% below its median level since 1987, says JPMorgan's Dan Morris, but the index is cap-weighted - meaning it's biased towards larger nations. Most smaller emerging markets are trading at a premium to their long-term average. Opportunities exist, but an indiscriminate approach may not work. Combining cheap with improving corporate governane - Mexico (EWW), Turkey (TUR), Poland (PLND), and Taiwan (EWT).