Anybody who has invested in emerging markets over the last few years will tell you they have been killed.    Investing in emerging markets has been a small part of my diversification strategy, so while it has not been a winner I see it as a cost of diversification.

So I was interested to see this article discuss the BRICs (acryonym for Brazil, Russia, India, China) – and how they have been turning around – and this chart tells an interesting story:

 

OECD Brick Leading economic indexes

Nomura Research

 

While the point of this article is that India is the winner so far in emerging markets investments, the recent uptick in the other BRICs was what interested me.  Yes I think India is an interesting investment opportunity – but so does everybody else and thus its pretty high priced compared to other companies.

One of the other sites I check in periodically is this Star Capital page showing worldwide market valuations.

 

wvaluation

 

Note Russia, China and Brazil are the 3 cheapest equity markets in the world using this sites scoring system (which seems fair).  India is not shown – as it appear at #32 right ahead of the US at #33.

Yes Russia, China, and Brazil all have their warts and reasons not to invest in those markets – but the valuations when compared to India are intriguing.   For contrarians who believe the uptick of emerging markets is not just a blip but a trend, one would have to think there is an opportunity here.

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