Korean banks are the most mispriced of EM financials

ON SPECIALIST MARKETS

Sanlam's Kokkie Kooyman discusses why financial services players in emerging markets are better placed than their developed peers.

A Greek default is inevitable; it is just a matter of how long the ECB and IMF keep postponing it. The real question is whether this will trigger Portuguese and Irish defaults, and whether Spain will remain standing? Hence, forecasting bank earnings is fraught with difficulty at the moment. Across the Atlantic the US government debt bubble is also waiting to be pricked. Tax rates will have to be raised and government expenditure severely cut. Not a foundation from which to build a case for continued economic growth. One feels like shouting “Is there no light at the end of this tunnel?...