The Valuations In The Emerging Markets Look Attractive

by khalid on 01/11/2011 · 0 comments

For the past few months the Markets were reacting badly to the Global situation and were creating huge uncertainty. But now after these corrections the valuations in the emerging markets are looking very attractive. These valuations can attract large amount of FIIs and improve the growth rate for the markets. Though the uncertainty cannot be ruled out fully as we there is time to enter a perfect bull market. Not only the Asian markets but the US and the European markets also have uncertainty hovering around them. The EU deal will take around six months to make any impact and till then there will be corrections going off and on in the markets. There will be mediocre growth in Japan, US, and Europe. US will see a growth of 1.5-2.5% in the coming two to three years.

The European summit had come out with a positive principle to bail out the sectors suffering in Europe, specially the banks. The other positive thing was the principle of raising the resources in the European support mechanism. But the problem ahead is that these deals need to be implemented properly. Investors around the world are now trading in a defensive manner and now the emerging markets are looking to be a good option as compared to the previous year. At current levels the downside risk in India looks to be low and the markets can remain positive for the time being But the investors should wait for another six months to see any major rally in the markets.

Bell The Bull says: Investors should invest cautiously and wait for another six months for a major rally 

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