Global Stock Market PE Ratio's and Growth Potential- June 08
Stock-Markets / Stock Market Valuations Jun 19, 2008 - 11:23 AM GMT
The last six months have been a turbulent time for most global stock markets. Gross overvaluation that saw the chinese stock market trading on a price earnings of more than 50 has been swiftly followed by a severe bear market that has wiped more than 50% of the stock market. At the time I warned that China is primed for a crash whilst many grasped at Nasdaq dot com bubble straws suggesting that China could run to a PE of 100 as Nasdaq had once done, it never happened.
Now with many stock markets become cheaper, whilst growth continues in the emerging markets at a healthy pace, presents investors with opportunities in certain markets for the long-run. I say long-run as short-term uncertainty remains and is something that I will look into as an update to my global stock markets forecast of March 2008 which covered the trend outlook for major markets into late June 2008 which basically called for a rally from March to early May and a decline into late June, much as has transpired.
The Top 5 Emerging Markets Based on Growth Expectations are:
- Russia
- South Korea
- India
- Turkey
- Saudi Arabia
The more illiquid emerging markets with potential are –
- African countries
- Central Asian
- Middle-Eastern.
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By Nadeem Walayat
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