Jim Rogers, who predicted the start of the global commodities rally in 1999, said he's sold out of all emerging markets with the exception of China because they're ``over-exploited.''. He hope that he can buy it back in the next big correction. Jim Rogers, chairman of New York-based Beeland Interests Inc., said in an interview in Singapore on 2 Jul 2007
The emerging markets index has jumped 17 percent in 2007, but MSCI World Index only gained 8.2 percent gain.
My view is that valuations are not super-attractive as these markets have run up quite a lot. Therefore, while it is not expensive in my view, it is not cheap either, and a correction in the market is possible in the near term.
If we take a look at the STI chart, the STI has broken the uptrend line, which means that chance for a correction is getting higher. A likely situation is that the STI will trade higher to “kiss” the uptrend line before making a bigger correction down.