Chart of the week: Emerging markets’ big Dogs

Chart: stockmarket price/earnings ratios

Some emerging markets suffer “discounts for obnoxious governments” (Dogs), says Buttonwood in The Economist. The Russian state’s capriciousness and attacks on property rights, for example, mean its stocks trade on a price/earnings (p/e) ratio of below six.

At the average emerging market p/e of 12.5, investors would be shelling out an additional $1trn – $7,000 for every Russian citizen. Argentina, Iran and Zimbabwe also have big Dogs.

• Stay up to date with MoneyWeek: Follow us on TwitterFacebook and Google+

MoneyWeek magazine

Latest issue:

Magazine cover
Why you should worry about Greece

...and how to protect your wealth

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

From ADRs to Z scores – all the terms you wish you understood, but were too embarrassed to ask about.

Gervais Williams: if you want real dividend growth, buy small-cap stocks

Merryn Somerset Webb interviews small-cap stock expert Gervais Williams about how penny shares outperform blue chips 'again and again'.


Which investment platform is the right one for you?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from, with varying fees and charges. Find out which is best for you.


6 July 1907: Brooklands, the world's first motor racing circuit, holds its first race

Brooklands, the world's first motor racing circuit, built on the Weybridge estate of Hugh Fortescue Locke King, held its first race meeting on this day in 1907.


Anatomy of a Grexit: how Greece would go about leaving the euro

Jonathan Loynes and Jennifer McKeown, economists at Capital Economics, look at the key issues and challenges of a Grexit, how it might be best managed, and set out a timetable for change.