Monday, July 26, 2004

Do It Yourself

It's a big world out there--49,000 stocks trade on overseas markets. You can throw up your hands and have a mutual fund do the picking for you. Or you can be your own portfolio manager. Over the next four pages we provide a jumping-off point for your search. These are 125 foreign stocks that are cheap by at least one of three different classic measures.

Despite the rally in most bourses over the past year, stocks are less expensive than they were five years ago. Since mid-1999 the U.S. and Japanese markets and the Morgan Stanley Capital International EAFE Index of European and Asian stocks are all off between 13% and 22%. Five years ago the average Japanese stock was going for 45 times estimated profits for that fiscal year. Now it costs a mere 16 times expected earnings. A handful of dicier markets have done very well since 1999; both Turkey and Russia would have better than tripled your money in dollar terms.

Full story at