http://www.bloomberg.com/news/2011-08-09/emerging-stocks-priced-for-profit-tumble-signal-bottom-to-morgan-stanley.html
The lowest developing-nation equity valuations since January 2009 are a sign that the MSCI Emerging Markets Index’s worst tumble in three years is nearing an end, according to strategists at three of the world’s biggest banks.
The retreat may be overdone because rising consumer demand in developing nations will boost profits by 3 percent even if advanced economies slip toward recession, Europe’s debt crisis worsens and China keeps a tight monetary policy, said Jonathan Garner, Morgan Stanley’s chief Asia and emerging-markets strategist.
Shares may hit bottom within days, said Jason Press at Citigroup Inc. Valuations are at levels seen two years ago after Lehman Brothers Holdings Inc.’s collapse and in the 1990s emerging-market crises, said Nicholas Smithie at UBS AG.
“Stocks look like buys,” Smithie, the New York-based emerging-market strategist at UBS, Switzerland’s biggest lender, said in an Aug. 8 telephone interview. “There has to be a Lehman-style collapse in economic activity and stress in the financial system for these valuations to be justified.”
Developing economies will probably expand 6.4 percent next year, compared with 2.6 percent in advanced nations, according to June estimates from the International Monetary Fund.
Stocks are “pricing in an earnings recession, which certainly does not seem to be the case,” Press, a New York-based emerging-market strategist at Citigroup, the third-biggest U.S. bank, said in an Aug. 8 phone interview. “The market panic has gone too far.”
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SAMEER SAYS
TOO MUCH BULLISHNESS HERE
TOO MUCH - OF BUY THE DIP MENTALITY
CLEARLY ANY OF THE ABOVE PEOPLE HAVE NO CLUE AS TO WHAT THEY ARE TALKING ABT!!!!
The lowest developing-nation equity valuations since January 2009 are a sign that the MSCI Emerging Markets Index’s worst tumble in three years is nearing an end, according to strategists at three of the world’s biggest banks.
The retreat may be overdone because rising consumer demand in developing nations will boost profits by 3 percent even if advanced economies slip toward recession, Europe’s debt crisis worsens and China keeps a tight monetary policy, said Jonathan Garner, Morgan Stanley’s chief Asia and emerging-markets strategist.
Shares may hit bottom within days, said Jason Press at Citigroup Inc. Valuations are at levels seen two years ago after Lehman Brothers Holdings Inc.’s collapse and in the 1990s emerging-market crises, said Nicholas Smithie at UBS AG.
“Stocks look like buys,” Smithie, the New York-based emerging-market strategist at UBS, Switzerland’s biggest lender, said in an Aug. 8 telephone interview. “There has to be a Lehman-style collapse in economic activity and stress in the financial system for these valuations to be justified.”
Developing economies will probably expand 6.4 percent next year, compared with 2.6 percent in advanced nations, according to June estimates from the International Monetary Fund.
Stocks are “pricing in an earnings recession, which certainly does not seem to be the case,” Press, a New York-based emerging-market strategist at Citigroup, the third-biggest U.S. bank, said in an Aug. 8 phone interview. “The market panic has gone too far.”
‘Outstanding Value’
Concern about “inflation and policy tightening in Asia and emerging markets is clearly ending,” Morgan Stanley’s Garnersaid in an Aug. 8 phone interview. “In our base case, there would be outstanding value in the market here.”==========
SAMEER SAYS
TOO MUCH BULLISHNESS HERE
TOO MUCH - OF BUY THE DIP MENTALITY
CLEARLY ANY OF THE ABOVE PEOPLE HAVE NO CLUE AS TO WHAT THEY ARE TALKING ABT!!!!
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