Wednesday, November 21, 2007

Emerhing markets over valued

I strongly criticize the article. While I have to agree with his PE multiples i have to say there is quite less to worry about atl least for couple of years especially in India. Too much money chasing few deals. I think from the governance part India has did a pretty good job in locking in as much as money as can when they come in.

While the fundamentals of the finance past valuation are past. I am sure the high PE multiples are driven by the projected growth not for one quarter but for coming years. Recalling exactly the same book. World in flat ( Had it flattened enough) definitely know they are enough bumps in lot more areas and its slowly catching up.

I can challenges the author . If we can come up with a consensus for real estate investing in India.

Emerging Markets: An Increasingly Poor Bet? - Seeking Alpha

Consider for example the Price to Earnings (PE) ratios of these markets (on estimated 2007 earnings):

United States S&P 500: 15.5x

United Kingdom FTSE 100: 12.1x

France CAC 40: 12.4x

Germany DAX 30: 12.6x

China Shanghai: 42.7x

India Sensex: 22.4x

Venezuela: 20.6x

Pakistan: 18.6x

Slovenia: 35.6x