Discover and read the best of Twitter Threads about #frontiermarkets
Most recents (3)
1/x
Sentiment check across markets. P/BV vs 10y averages. Assuming companies will perform neither better or worse fundamentally than they've shown historically, and shareholders will pay what they have on average have paid for those companies. Starting with #SPX500
Sentiment check across markets. P/BV vs 10y averages. Assuming companies will perform neither better or worse fundamentally than they've shown historically, and shareholders will pay what they have on average have paid for those companies. Starting with #SPX500
#SPX500 would need to come down to slightly above 3100 to reach its 10y average. 
3/X
..And will in that case drag MSCI World with it (60% US). 23% down to average.
..And will in that case drag MSCI World with it (60% US). 23% down to average.
1/X - So #Pakistan is under review for "downgrade" to Frontier index. Personally I think it would be a good move. At 2bps of MSCI EM it will continue to be ignored. A few observations on MSCI Frontier Index and its use:
#EmergingMarkets #FrontierMarkets
#EmergingMarkets #FrontierMarkets
2/X - There is a structural flaw in the algorithm deciding country weights. As opposed to MSCI EM where 50% free float is required, in FM index a mere 7,5% free-float is required. Not a brilliant idea as it gives a higher weight to "zombie markets" with zero liquidity.
3/X - It is ridiculous that #Bangladesh with >150 musd a day has 1/3 of the weight of #Kenya with 6 musd.
Welcome to #Iran, home of the World's Best Performing Stock Market this year – Iran's main equity index rose by 73.5% in US dollar terms YTD, the most among 90 national indices tracked by @AmtelonCapital
#FrontierMarkets #EmergingMarkets
#FrontierMarkets #EmergingMarkets
Unlike some obscure illiquid stock markets that from time to time show spectacular performance, Iran’s equity market boasts 600 listed companies diversified across 50 industries, $110 billion market cap and $140 million of daily liquidity
What explains these gains? Not QE or momentum algos. In Iran, it's the old-fashioned earnings growth that drives share prices. Listed companies’ median earnings increased by a whopping 130% yoy in 2Q19.
