ringledman
Registered User
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So what assets out there in the world are dirt cheap and ripe for investment at present?
Where can a value investor find really 'dirt cheap' value today? I'm thinking highly undervalued assets, not those that are considered as 'fair value'.
My take is that there are very few places -
Property - Germany and Japan only. Perhaps US property is getting to 'fair value' but property always undershoots fair value before rising again.
http://www.economist.com/businessfinance/displaystory.cfm?story_id=15179388
A yield of 10%+ represents undervalued IMO.
Stocks - Japanese (Particularly Japanese Smaller Stocks that sell at below book cost and are now at 1990 prices).
http://www.investmentu.com/IUEL/2010/February/japanese-stocks.html
http://www.investmentu.com/IUEL/2010/February/investing-in-japan.html
It doesn't get much better than a 20 year bear market for creating value.
Bonds - Virtually nowhere! Maybe emerging markets and corporate bonds are at 'fair value' but I can't see many really cheap bonds out there. Western government bonds are a bubble set to explode and highly overvalued IMO.
Commodities - Probably fair value for most. Agricultural soft commodities are probably the only really undervalued commodity play today.
Personally I cannot see anything in the world as cheap and 'Underowned, Undervalued, Unloved and Ugly' as Japanese stocks. These have great investment potential IMO.
Any thoughts on these or other areas ripe for the long term investor? and reasons - i.e. markets on unbelievably low P/Es, Property at exceptionally high yields?
Not markets or sectors that seem reasonably valued but those that are seriously undervalued and hated as investments by the majority or public, thus ready for their next boom.
Where can a value investor find really 'dirt cheap' value today? I'm thinking highly undervalued assets, not those that are considered as 'fair value'.
My take is that there are very few places -
Property - Germany and Japan only. Perhaps US property is getting to 'fair value' but property always undershoots fair value before rising again.
http://www.economist.com/businessfinance/displaystory.cfm?story_id=15179388
A yield of 10%+ represents undervalued IMO.
Stocks - Japanese (Particularly Japanese Smaller Stocks that sell at below book cost and are now at 1990 prices).
http://www.investmentu.com/IUEL/2010/February/japanese-stocks.html
http://www.investmentu.com/IUEL/2010/February/investing-in-japan.html
It doesn't get much better than a 20 year bear market for creating value.
Bonds - Virtually nowhere! Maybe emerging markets and corporate bonds are at 'fair value' but I can't see many really cheap bonds out there. Western government bonds are a bubble set to explode and highly overvalued IMO.
Commodities - Probably fair value for most. Agricultural soft commodities are probably the only really undervalued commodity play today.
Personally I cannot see anything in the world as cheap and 'Underowned, Undervalued, Unloved and Ugly' as Japanese stocks. These have great investment potential IMO.
Any thoughts on these or other areas ripe for the long term investor? and reasons - i.e. markets on unbelievably low P/Es, Property at exceptionally high yields?
Not markets or sectors that seem reasonably valued but those that are seriously undervalued and hated as investments by the majority or public, thus ready for their next boom.