Comments on: Attractive valuations in stocks outside North America http://www.canadiancapitalist.com/attractive-valuations-in-stocks-outside-north-america/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dividend Growth Investor http://www.canadiancapitalist.com/attractive-valuations-in-stocks-outside-north-america/#comment-149882 Dividend Growth Investor Fri, 22 Aug 2008 19:27:26 +0000 http://www.canadiancapitalist.com/?p=1172#comment-149882 CC, That's a good answer - no matter what happens you will stick to your plan. That's what most investors should do. CC,

That’s a good answer – no matter what happens you will stick to your plan.

That’s what most investors should do.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/attractive-valuations-in-stocks-outside-north-america/#comment-149690 Canadian Capitalist Thu, 21 Aug 2008 14:51:35 +0000 http://www.canadiancapitalist.com/?p=1172#comment-149690 DGI: It depends on how "earnings" are calculated. Excluding special factors such as write downs S&P's estimate of 2007 earnings is $82.54 and $80.79 for 2008 (Standard & Poor's The Outlook, August 20, 2008). That would put the trailing P/E at 15. Granted, completely ignoring write downs might not be entirely accurate either but that's a smaller error than assuming one time events forever in the future. Note that I'm talking about broad emerging markets in this post. Among the top eight emerging markets in VWO, only two Brazil and Russia (making up 20%) are commodity based. I don't have an opinion (even if I did, it would be worthless) on what emerging markets will do in the future. But, I know that I have a 5% target and I have to allocate that at some point of time and now doesn't seem to be too bad from a valuation perspective. DGI: It depends on how “earnings” are calculated. Excluding special factors such as write downs S&P’s estimate of 2007 earnings is $82.54 and $80.79 for 2008 (Standard & Poor’s The Outlook, August 20, 2008). That would put the trailing P/E at 15. Granted, completely ignoring write downs might not be entirely accurate either but that’s a smaller error than assuming one time events forever in the future.

Note that I’m talking about broad emerging markets in this post. Among the top eight emerging markets in VWO, only two Brazil and Russia (making up 20%) are commodity based. I don’t have an opinion (even if I did, it would be worthless) on what emerging markets will do in the future. But, I know that I have a 5% target and I have to allocate that at some point of time and now doesn’t seem to be too bad from a valuation perspective.

]]> By: Dividend Growth Investor http://www.canadiancapitalist.com/attractive-valuations-in-stocks-outside-north-america/#comment-149684 Dividend Growth Investor Thu, 21 Aug 2008 14:21:33 +0000 http://www.canadiancapitalist.com/?p=1172#comment-149684 CC, According to Yahoo finance the P/E on SPY or IVV ( ETF's tracking the S&P 500) is about 13 to 13.5. If you check S&P website however the P/E on S&P 500 comes out to 24. ( 12 month EPs as of 6/30/08 is $51/share). Anyways aside from this, I am not very bullish on emerging markets as historically they have underperformed during a recession. That being said, many folks believe that the so called emerging markets have turned around and are somewhat immune to the US economic cycle downturns. My opinion however is that most emerging markets have risen as a result of the rising commodity prices, which helped them generate more in foreign currency revenues. If commodity prices were to start going south, most emerging markets will start going down faster. CC,

According to Yahoo finance the P/E on SPY or IVV ( ETF’s tracking the S&P 500) is about 13 to 13.5. If you check S&P website however the P/E on S&P 500 comes out to 24. ( 12 month EPs as of 6/30/08 is $51/share).

Anyways aside from this, I am not very bullish on emerging markets as historically they have underperformed during a recession. That being said, many folks believe that the so called emerging markets have turned around and are somewhat immune to the US economic cycle downturns.

My opinion however is that most emerging markets have risen as a result of the rising commodity prices, which helped them generate more in foreign currency revenues. If commodity prices were to start going south, most emerging markets will start going down faster.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/attractive-valuations-in-stocks-outside-north-america/#comment-149682 Canadian Capitalist Thu, 21 Aug 2008 14:04:19 +0000 http://www.canadiancapitalist.com/?p=1172#comment-149682 telly: I've added VWO personally - at 5%, I have the target allocation now - but these markets are extremely volatile and could drop further from here. It's impossible to time the entry but I think if we buy at reasonable valuations, we should be okay. telly: I’ve added VWO personally – at 5%, I have the target allocation now – but these markets are extremely volatile and could drop further from here. It’s impossible to time the entry but I think if we buy at reasonable valuations, we should be okay.

]]> By: telly http://www.canadiancapitalist.com/attractive-valuations-in-stocks-outside-north-america/#comment-149678 telly Thu, 21 Aug 2008 13:13:40 +0000 http://www.canadiancapitalist.com/?p=1172#comment-149678 We're currently at 5% VWO but our asset allocation aims for 8% emerging markets. We've been purchasing VWO regularly over the past year or so and our return on it is -18% so far. :( We're still buying to build up to 8% so it's a relief to read your (valued) opinion that it's looking fairly cheap right now. We’re currently at 5% VWO but our asset allocation aims for 8% emerging markets. We’ve been purchasing VWO regularly over the past year or so and our return on it is -18% so far. :(

We’re still buying to build up to 8% so it’s a relief to read your (valued) opinion that it’s looking fairly cheap right now.

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