logicalsinger

Emerging Markets: An Increasingly Poor Bet?

Seems to me the points made here are quite cogent:
1- many Emerging markets trade at higher multiples than developed markets
2- they should probably be at lower multiples instead due to higher political risk and the dominance of cyclical companies in these markets.
Don't confuse "gobblygook" (btw the real word is gobbleDYgook :) )and an argument that disagrees with your long position.

Emerging Markets: An Increasingly Poor Bet?

Seems to me the points made here are quite cogent:
1- many merging markets trade at higher multiples than developed markets
2- they should probably be at lower multiples instead due to higher political risk and the dominance of cyclical companies in these markets.
Don't confuse "gobblygook" (btw the real word is gobbleDYgook :) )and an argument that disagrees with your long position.

Emerging Markets: An Increasingly Poor Bet?

A 5 point PE gap, when the S&P trades at 15x, is a > 33% difference. A 10 point PE gap is a > 67% difference.