Global Market Corrections: Any Opportunity? October 17, 2014
In this article, we will help you search for investment opportunities in markets with higher values in light of the current global market corrections.
Author : Fundsupermart.com
(just part from the articles)
Asia (ex-Japan) Market: Time to Buy
Asia ex-Japan equities missed most of the global upward moves led by the developed markets last year. Yet based on the attractive valuations and improving macro-economic factors, these markets still have room for growth. From May 2014 to August 31 2014, the MSCI Asia ex Japan Index has recorded a 9.6% return (in USD terms). However, due to global market corrections, the index dropped 6.1% in September, presenting a very attractive opportunity. In addition, as of October 12 2014, the estimated PE is at 12.2X, far below its fair PE of 14.5X. Therefore, it is a good time to buy now.
Investors should note that not all Asian stock markets are bullish. From the perspective of another valuation model, “the price-to-book ratio–return on equity (P/B–ROE)”, in the same quality of earnings, the P/B of
some countries are more expensive, especially in ASEAN countries. However, it is not conflicting to be bearish on ASEAN and bullish on the Asian market. Among the MSCI Asia ex Japan Index’s constituent stocks, more than 70% are from the Northeast Asian region, among which China, Hong Kong and South Korea are rated five stars in FSM.
http://www.fundsupermart.com.hk/hk/main/re...?articleNo=8829wow...." another valuation model, “the price-to-book ratio–return on equity (P/B–ROE)”, in the same quality of earnings,".....too old to understand that liao