{"id":30713,"date":"2012-07-09T06:59:31","date_gmt":"2012-07-09T10:59:31","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/07\/an-international-value-investment-you-shouldnt-ignore\/"},"modified":"2012-07-09T06:59:31","modified_gmt":"2012-07-09T10:59:31","slug":"an-international-value-investment-you-shouldnt-ignore","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/07\/09\/an-international-value-investment-you-shouldnt-ignore\/","title":{"rendered":"An International Value Investment You Shouldn\u2019t Ignore"},"content":{"rendered":"

Article by Investment U<\/a> <\/p>\n

I\u2019ve only recently returned from a two-week tour of the Baltics. Of the seven countries I visited, the most interesting was Russia \u2013 and not just because of the grandeur of the Peterhof Palace or the glories of the Hermitage (Russia\u2019 answer to the Louvre).<\/p>\n

Russia is one of the world\u2019s cheapest and most attractive emerging markets. It\u2019s a pity not one investor in a hundred in the West has a penny invested there. Perhaps if they saw the big picture\u2026<\/p>\n

In 1980, developing countries accounted for just 30% of global economic growth. Today they generate more than half. Emerging nations cover 77% of the world\u2019s land area and represent 85% of the world\u2019s population. There are now 3.8 billion \u201cmiddle class\u201d people in the world today. And thanks to emerging market growth, that number is likely to double over the next 20 years.<\/p>\n

As The<\/em> Wall Street Journal<\/em> reported recently:<\/p>\n

\u201cIn the next 24 hours, approximately 180,000 people in developing countries will be moving from the countryside to cities such as Shanghai, Sao Paulo, Johannesburg. The same will happen tomorrow and every day thereafter for the next 30 years, the equivalent of creating one new New York City every two months. These men and women will need everything, electricity, water, food, healthcare, shelter, schools, computers and, of course, jobs.\u201d<\/p>\n

The investment implications here are stupendous. Yet I speak to many Americans who say their emerging market exposure is somewhere between meager and nonexistent. This is especially true of Russia, perhaps the least loved of the BRIC (Brazil, Russia, India and China) countries.<\/p>\n

However, the world\u2019s top emerging markets equity manager, Mark Mobius, is particularly high on Russia, even claiming in a recent interview that it\u2019s his favorite market worldwide.<\/p>\n

“Russia has been beaten down, has not really performed that well, the valuations are very good. The political picture is getting better. So I might pick Russia,” he said in the interview.<\/p>\n

Why? Partly because Mobius, a dedicated value investor like his mentor John Templeton<\/a>, likes to buy things cheap. Russia\u2019s economy is dominated by the export of natural resources. Yet commodity prices have dropped precipitously this year \u2013 and so have Russian stocks. The Russian stock market currently sells for less than eight times earnings, even though the economy is likely to grow at 3.5% this year and Putin has plans to deregulate several industries and boost infrastructure development.<\/p>\n

\"An<\/p>\n

Mobius calls Russian equities \u201ctoo cheap to ignore.\u201d Clearly, I\u2019m not suggesting anyone bet the farm on Russian equities. That wouldn\u2019t be prudent. But if you\u2019re looking to put some risk capital to work in an undervalued market with good growth prospects, it could be a very wise bet.<\/p>\n

Good Investing,<\/p>\n

Alexander Green<\/p>\n

\n<\/a> <\/a> <\/a> <\/a> <\/a>\n<\/div>\n

<\/p>\n

Article by Investment U<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by Investment U I\u2019ve only recently returned from a two-week tour of the Baltics. Of the seven countries I visited, the most interesting was Russia \u2013 and not just because of the grandeur of the Peterhof Palace or the glories of the Hermitage (Russia\u2019 answer to the Louvre). Russia is one of the world\u2019s … <\/p>\n

Continue reading “An International Value Investment You Shouldn\u2019t Ignore”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-30713","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/30713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=30713"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/30713\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=30713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=30713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=30713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}