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Are Financial Markets Expensive Now?


pecountry0510 Using the data provided from Financial Times, which you can download the pdf document, you can see that quite a few financial markets are near the 18-20 mark.

These includes Singapore, US S&P 500, China, Hong Kong, South Korea amongst others.

While some argue that P/E on its own is not meaningful, it provides a useful guide to which financial markets are undervalued compared to their counterparts elsewhere.

So where are the countries with undervalued markets?

Pakistan, Romania, Bulgaria and Venezuela are all below the 10 mark. Russia looks a good place to put some money, along with Brazil with their markets hovering around the 13 figure. A good place to consider will be the BRIC ETFs which invests in Brazil, Russia, India and China.

How the world market will do this year, no one can tell you for sure, so the best we can do as investors is to look for some bargains when they become available.

So are they expensive right now? Not yet, but those that are in their 30s and above looks overvalued right now.

I shall end here with a link to an interesting article in Business Week that talks about “Wall Street Hubris Soars as Crisis Goes to Waste by William Cohan

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