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+

Comment on this article

MoneyWeek magazine

Latest issue:

Magazine cover
Avoid the dinosaurs

Why smaller stocks are better bets

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

Vote in the MoneyWeek Readers' Choice Awards

Vote for your favourite financial services company in the inaugural MoneyWeek Awards, and you could win a year's subscription to MoneyWeek magazine. Find out more and vote here.


Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.