When you look at PE chart of MSCI ex Japan, it's approaching valuation of 2008, and 1998. and it's around the lowest level in 25 years time. It's valuation is similar with troubled Europe countries. When you look at Malaysia PE, it is still around 10 years average, which is still far away from the lowest valuation of 2008. Malaysia is an exceptional case as most of the shares are controlled by business owner and government arm. Foreign investor contribution portion is substantially less than regional peers. Moreover, when the media concentrate on positive side of the news, its market's reaction to external shock will be slow. However it will change swiftly if there is any political shock in the country.
Asia emerging market is growing at a fast pace with their ever stronger fiscal position. Why is the market trade at such low valuation? The Asia emerging market emerge stronger after each crisis. They will be taking over more share of global economy this round, and more importantly, there are still lots of excitement and opportunity to grow here.
I think it's a good idea to agressive research and accumulate some good companies with bright prospect in Asia emerging market here now and hold for 10 to 20 years. The world will be different then.
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