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Will lower valuations tempt investors back?

The plunge in emerging market equity prices has driven the price/earnings ratios of the MSCI Emerging Asia Index and MSCI EMEA Index down towards their lowest levels since late 2011 and the earlier financial crisis. As a result, they are now much further below their ten-year averages than the aggregate price/earnings ratio of developed market equities. By contrast, valuations in Latin America generally remain stretched by past standards. 

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