Which Emerging Markets Are Cheap Now: Chart

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Many emerging markets have held up well so far this year relative to their developed world peers. These markets are performing well for many reasons including rising commodity prices. Countries such as Brazil, Chile in Latin America, South Africa in EMEA and Malaysia in the Asian region are in the positive year-to-date.

With that said, some investors may be wondering which markets are cheap now. A recent article at Schroders noted that countries such as Chile, Colombia, South Africa, Poland, etc. are cheaper based on 12-month forward P/E.

The expensive and cheap emerging markets:

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Source: Is Mexico’s resurgence losing steam?, Schroders

Related ETFs:

  • iShares MSCI Mexico Capped Investable Market (EWW)
  • Global X FTSE Colombia 20 ETF (GXG)
  • iShares MSCI Brazil Index (EWZ)
  • WisdomTree India Earnings (EPI)
  • The iShares MSCI India ETF  (INDA)

Disclosure: No positions

Three Charts on U.S. Gun Culture

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The BBC published an article last on the gun culture in the U.S. The article listed many shocking facts. The following are three charts from that piece.

The U.S. is the top civilian gun-owning country in the world with a ratio of 120.5 firearms per 100 residents. The second top country in the ranking is Yemen, where a civil war is currently in progress. Among the developed countries, Switzerland has the next most gun ownership.

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Unlike Switzerland, a total of 45,222 people died from gun-related injuries in the US in the year 2020.

 

Another shocking fact is that nearly 53 people are killed each day in the country, according to CDC data. 79% of all murders are carried out with guns. This is the highest figure when compared to three other developed countries. Canada is the next worst.

Source: America’s gun culture – in seven charts, The BBC

S&P 500 Intra-year Declines and Year Total Returns 1980 To 2021: Chart

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Intra-year declines in the equity markets are a common occurrence. At the risk of stating the obvious, stocks never only go up always. In any given year, stocks decline significantly though the course of the year for any number of reasons but end up the year with a positive total return. Stomach-churning volatility can shake the conviction of even the most patient investors.

The following chart the intra-year declines for the S&P 500 and the yearly total returns for the S&P 500 index from 1980 to 2021:

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Source: Alliance Bernstein

During the period shown, the S&P  has had negative returns for the year less than 10 times. Moreover consecutive down years in a row are rare. The last time this occurred was after the dot-com implosion.

The key takeaway is that returns for the whole year is what matters. Not the intra-year declines.

Related ETF:

  •  SPDR S&P 500 ETF Trust (SPY)

Disclosure: No positions

Canada S&P/TSX Composite Index Annual Returns 1924 To 2020: Chart

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Stocks tend to yield a positive return over the long term. This is true in many equity markets of the world including Canada. From 1924 thru 2020, Canadian stocks as represented by S&P/TSX Composite Index have earned investors a positive return 73% of the time. To put it another way, positive years trump negative returns.

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Source: 3 guidelines to keep in mind in volatile markets, Russell Investments

Related ETF:

  •  iShares MSCI Canada ETF (EWC)

Disclosure: No positions