M&G's Godfrey on Asia

Patience and stockpicking key to taking advantage of inefficiency.

Twelve months ago, investors did not want to know about Asia; a year later, many are sitting on some handsome profits from the region’s stock markets. The MSCI Asia Pacific ex Japan Index has doubled from its low point in March 2009 and the question now on many people’s minds is whether the positive trend can keep going. Before we answer that question, it is important to consider Asia’s rally in its rightful context. Valuations a year ago were at bargain levels as investors became increasingly concerned about the health of the global economy. Risk aversion was paramount and valuations of...