Emerging Markets at Home: Stocks in countries like China have become pricey. But some Western companies offer a cheap way to profit from newer economies

摘要

IT HAS BECOME AN INVESTING TRUISM OF LATE: If you Want Stocks with high-octane potential, you're wise to invest in the fast-growing economies of emerging markets. The result has been frenzied demand for such stocks and skyrocketing valuations. The MSCI Emerging Markets index has risen 76% in the past year, and China's main stock index now trades at a price/earnings ratio of 31, more than 50% higher than that of the S&P 500. Investors find themselves in a quandary: Yes, new economies have the richest potential, but who can afford those prices.