Have you ever tried putting money in the stock market? If you have, then you probably know that it is hard to predict which markets will offer the greatest returns. In fact, even investors with years of experience find this task challenging.
However, a new research has come to investors’ rescue. The Sunday Telegraph published a list of 55 countries based on their share soar they are expected to register in the future. In addition, to a business’ strength, the list is also organized in terms of easily affordable share prices. In other words, the report outlines today’s cheapest stock markets, where shares are soon expected to soar.
According to the study, the top 5 cheapest markets are Russia (1), Hungary (2), Turkey (3), Austria (4), as well as Italy (6). They are followed by Brazil (7), South Korea (8), the Czech Republic (9) and China (10).
On the opposite end are Denmark, the U.S., the Philippines and Mexico. According to The Sunday Telegraph, those are the markets that offer the worse value today.
The research reveals that some stock markets will be more affordable than others. The reason is that they are less economically stable. That, however, means that investors will not have the chance to witness dividends anytime soon. Therefore, the study tries to identify not only stock markets which are cheap, but also have the potential of a gain in the near future.
The report has found that emerging markets are currently at their most affordable rates. Even though many stock markets in developed countries have offered impressive returns over the last few years, they are currently quite pricy. Such is the case with the U.K. and the U.S., for example. Therefore, if you are searching for a quick return, you should focus on emerging markets.
However, The Sunday Telegraph’s experts warn that some of the leaders in their ranking are highly dependent on countries listed further down the list. Among them are Russia (1) and Brazil (7). Over the past few years, their economy is connected to that of China mainly through imports from the Asian country. However, China has the ambition to become more economically independent in the future. That will inevitably affect and rearrange the ranking. Therefore, analysts advise investors to bet their money on countries that do not rely on backup from other economies.
Here are the 10 cheapest stock markets in the world today:
- Russia
- Hungary
- Turkey
- Austria
CEEMEA – Central and Eastern Europe, Middle East and Africa
- Italy
- Brazil
- South Korea
- Czech Republic
- China
Also, even though stock markets in CEEMEA (Central Eastern Europe, Middle East and Africa) are very cheap, their require some extra caution. Investors should play more modestly until they receive more insight into the long-term investment credentials in these regions. Still, the Middle East and Africa stock markets are said to be a safer option compared to Central and Eastern Europe.
