A lot of people are commenting on how the Emerging Markets are collapsing. Its not hard to see why with the crazy stock market and impending slowdown in China, instability in Thailand, the corruption scandals in Malaysia and the poor economic outlook of the other countries. Sell first and think later is the watchword of the day. And yet, by my measure, emerging market valuations are exceedingly cheap. And if we don’t buy when its cheap, when do we buy? In the last post, I talked about how looking at the price levels are not an accurate gauge of how “expensive” or “cheap” a market is. It doesn’t take into account the economic activity over the years, reflected either through dividend payouts or increases in book value. I am pretty bias towards the P/B ratio, just because it takes out a lot of the fluctuations in earnings. There maybe problems ......