Another View Of Emerging Markets

We've talked recently about emerging markets.  Today Dr. Ed Yardeni has an excellent piece on the same subject.  Here, in my opinion is the main point:

"An even simpler explanation for the outperformance of the EM MSCI is that it has been and still is relatively cheap compared to the other MSCI stock composites based on their forward P/Es at the end of August: US (16.0), EMU (13.7), Japan (13.7), UK (13.6), and EM (11.3)."

And here's a performance chart going back to 12.31.2010 from stockcharts.com showing how various foreign indices via ETFs have done vs the US {as represented by the S&P 500 ET-SPY}.

*Long ETFS related to various indices listed above in client and personal accounts although these positions may change at any time.

Yardeni:  "Why are Emerging Markets Outperforming?"