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Are Emerging Markets a Bargain?

03 September 2018

The Wall Street Journal has on article on whether now is the time to make a contrarian investment in the emerging markets. In short, the Journal concludes that the answer is “No.” The MSCI Emerging Markets Index is currently trading at only 11x estimated earnings (vs. 17x for the S&P 500); however, per the article, the lower valuation is mostly due to financial and utility stocks in Greece, Turkey and China. The article highlights the fact that emerging market health care, technology and consumer discretionary stocks are trading at higher valuations than U.S. counterparts.