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.