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Emerging markets still look 'best to invest'

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In which countries are you best to invest? According to research carried out by Morningstar, stocks in emerging markets such as Russia and Brazil are comparatively cheaper than those in Europe and North America.

The company looks at the quantitative price and fair value ratio at the country level. It says that Canada, the US and Mexico are all over-valued but in South America, Brazil is undervalued at minus 5.5%.

In Europe it says all countries bar the UK are overvalued. Russia, meanwhile, is undervalued by minus 6.4%.

Asia looks more attractive with China still undervalued at minus 1.1%. Australia is also a good bet at minus 1.2%. Japan, however, looks slightly overvalued at 0.5%. The country that looks particularly overpriced is India at 9.6%.

Overall Morningstar believes the countries with the best values are Russia, China and Brazil.