Simon Edelsten, the manager of the Artemis Global Select fund, has told What Investment that he believes all emerging markets are expensive at the present with the exception of China. His comments about other emerging markets included:
If you look at Russia for example, it’s a market which is dominated by resource stocks, and its hard to get exposure to anything other than those. The same applies to Brazil, it’s a big country but a small number of resource stocks… A big problem in India is that it’s a big country, which is to a large extent governed from the regions, rather than the centre, making reforms to the things like the bureaucracy hard to achieve… A big problem in India is that it’s a big country, which is to a large extent governed from the regions, rather than the centre, making reforms to the things like the bureaucracy hard to achieve…If you are a long-term buy-and-hold investor, then South East Asia has a lot to offer, if you are prepared to tolerate some volatility. But a long-term investor should be looking to buy in the dips [when the market has suffered a sudden fall and is cheaper] and at the present time South East Asia is not a cheap market.
He then made the case for investing in China right now and commented:
The difference with China is that it is a cheap market right now. It has all of the positives which people talk about as applying to other emerging markets, but is at a discount to everyone, developed and emerging. Yes growth is slowing, but it’s still very healthy compared to developed markets, and cheaply valued compared to emerging markets.
To read the whole article, ‘The only cheap emerging market in the world is China,’ go to the website of What Investment.
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