Time to Buy Vietnam

On the eve of Quantitative Easing Act II, as the Great American Printing Press roars to a start, a tidal wave of liquidity is pouring into emerging markets. The MSCI Emerging Markets Asia index is up 18% in USD terms over the past three months. With valuations looking increasingly stretched and back-lashes over currency appreciation more prevalent in many of these markets, investors may consider increasing their exposure to Vietnam, an over-looked market with convincing fundamentals that is trading at humdrum valuation levels of 9x 2010 earnings, a four year low.