Foreign Markets Bounce Back

I mentioned just a few days ago that I found the emerging markets, especially Southeast Asia, extremely cheap.  After entering a bear down (down 20%), the valuations had just turned too favorable for it, especially in comparison to the slightly overvaluation in the US markets.

Lucky timing as emerging markets bounced right back.  Its up over 6% in just those couple of days.

Some specific countries have done even better:

Indonesia is up 10.5% after a pretty punishing drop.

Philippines is up 11%.

South Korea (one of the most undervalued markets) is up 5.6%.

I fully expect these to be an oversold bump rally, not yet confident if they have staying power yet but the point remains that these markets have been sold off a tad too much and for patient investors, may represent a good jumping in point.

Disclaimer: Have entered or added to these positions recently.