“S&P Capital IQ believes Taiwan remains a competitive force in the Asia/Pacific region. A firm recovery in business activity is anticipated this year and next as the rate of growth in real GDP accelerates 1.4 percentage points to 3.4 percent in 2014 and strengthens further to 3.6 percent in 2015 and 2016. As an export-driven economy, Taiwan is likely to benefit from further improvement in foreign demand amid a gradual revival in global economic activity and on account of further depreciation of the Taiwan dollar on a real effective, trade-weighted basis,” said the research firm.
Valuation has been and remains one of the more compelling reasons for investors to consider boosting emerging markets exposure.
“In comparison to developed markets, emerging markets and frontier markets are relatively cheap. Relative EM/DM price-to-book (P/B) is now at the most attractive levels we’ve seen in the past 10 years. While developed markets indices are hitting all-time highs, emerging markets indices are still off 24% from their peak,” added BlackRock.
Using the cyclically adjusted price/earnings ratio, or CAPE ratio, which evaluates earnings on a 10-year basis, investors will find plenty to like with IEMG. On a CAPE basis, Russia, Brazil, China and Turkey are four of the most discounted markets in the world. Those countries combine for 34% of IEMG’s weight. [Global Bargains Found in This ETF]
iShares Core MSCI Emerging Markets ETF
Tom Lydon’s clients own shares of EEM and IEMG.