Hey! Since I rarely see any discussions about emerging markets and growth markets in this subreddit I thought I should make my humble contribution.
I just thought I should list some of my current favourites for 2017 and then you can all feel free to make your own contributions, and also criticize mine:
Poland: Poland has been suffering together with the rest of eastern Europe for a couple of years mostly due to political risk associated with Russia. In the most recent valuation by (http://ift.tt/Xb11rq) Poland had a CAPE of 8.9 and a PB of 1,1. Keep in mind this is the stock market average in Poland of about 530 equities traded. I have found alot of companies from Poland when I went looking for cheap global stocks. Most of my favourities were in the financial, mining and consumer sectors. I think Poland has formed somewhat of a bottom formation and could be a possible strong play for the next 1-2 years considering the uptick in commodities, energy, pharma and financial stocks (Also some of the largest sectors in Poland)
ETF for an index: iShares MSCI Poland Capped ETF (EPOL)
Nigeria: Alrigth hold your horses, this doesn't have to be a shady scam. The Nigerian stock market has declined almost 75% in the last 3 years. Nigeria involves alot of political risk but it's also the largest economy in Africa and the 21st largest economy in the world. The most recent things troubling their economy is the devaluation of their currency and alot of money has been flowing out of the stock market because of more possible devaluations. Right now the Naira (Nigeria's currency) is trading at 304-305 to the USD. Speculations on stable currency conditions can be found in this article: http://ift.tt/2iIwaRV Nigeria also has problems with corruption so in summary this is a possible for a more long term hold. Keep in mind they just changed president and oil prices have been affecting their economy in a bad way. But if you're looking towards a long term Africa play in the stock market this would be a good one imo. The stock market has been hit badly in the last couple of years and it is a growing economy with a population of around 180 million people. P/E: 10-11, P/E FWD: 6,7, P/BV: 0,92 (MSCI All Nigeria Select 25/50) P/B: 1,5
ETF for an index: Global X MSCI Nigeria ETF (NGE)
Russia: Russia was a good bet in 2016 and has gone up alot since it hit the bottom in January 2016. However I still believe it has some to give considering the underlying companies are still strong players in the global economy. Russia's biggest companies are in the oil sector, to no ones surprise, but still has a big economy. And this is my own opinion but considering the latest "Trump loves Putin" rally it might be time for Russia to step up and take the front seat in the coming years. At a CAPE of 5-6 a P/E of 8,1 a P/B < 1 and a P/S of 0,8 this is still a cheap country.
ETF for an index: iShares MSCI Russia Capped ETF (ERUS)
So these are my thought on cheap markets to bet on for 2017, and as I said crtique is much appreciated and other contributions are more than welcome!
Submitted January 04, 2017 at 10:52AM by fetchezlavache3 http://ift.tt/2iAuZU9
