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Global Stock Market PE Ratio's and Growth Potential- June 08

Stock-Markets / Stock Market Valuations Jun 19, 2008 - 11:23 AM GMT

By: Nadeem_Walayat

Stock-Markets Best Financial Markets Analysis ArticleThe 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.

Global Stock Market PE Ratio's and Growth Potential- June 08

The Top 5 Emerging Markets Based on Growth Expectations are:

  1. Russia
  2. South Korea
  3. India
  4. Turkey
  5. Saudi Arabia

The more illiquid emerging markets with potential are –

  1. African countries
  2. Central Asian
  3. Middle-Eastern.

For Specific entry timing opportunities, see the New 12-page Special Report on Asian and Indian stocks, courtesy of our friends at Elliott Wave International.

Investment Opportunities for Asia's Big 6 Markets will give you specific forecasts and valuable commentary and observations for the following markets:

  • India's SENSEX
  • Japan's Nikkei 225
  • Hong Kong's Hang Seng & MSCI
  • China's Shanghai & Shenzen
  • Singapore's Straights Times
  • Australia's ASX 200 & All Ordinaries

This FREE 12-Page Report was written by an analyst who lived in Asia for most of the 1990s and knows the region's economy first hand. He digs deeply into today's investment potential for Asia to show you what's changed and what hasn't. He also presents the important socio-economic trends now shaping the Asian markets.

Click Here to Get the FREE Report Now

By Nadeem Walayat

Copyright © 2005-08 Marketoracle.co.uk (Market Oracle Ltd). All rights reserved.

Nadeem Walayat has over 20 years experience of trading, analysing and forecasting the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication. We present in-depth analysis from over 150 experienced analysts on a range of views of the probable direction of the financial markets. Thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any trading losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors before engaging in any trading activities.

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Nadeem Walayat Archive

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Comments

Sophie
20 Jun 08, 18:07
China Stocks will outperform

china is sitting on a cash surplus of $2 trillion, and growing by about $300 billion per year. I think you underestimate chinas potential growth, whilst india has many problems to overcome, especially with regards lack of infrastructure to support the boom without hitting capacity constraints.

Also india has a large budget deficit, high levels of debt and a current account deficit apparoaching 5% which suggests India is more susceptable to economic difficulties than China.


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