Deep Value Situation in New Zealand Stocks
We are always searching the globe for markets that are completely out of favor with the investment "community" and also off the radar with the average fund manager. Furthermore, we try to find out-of-favor markets where the underlying fundamentals, or at least the drivers of those fundamentals, are favorable.
We are concerned about inflation and rising commodity prices, we are diametrically opposed to the in-vogue "deflation and double-dip" school of thought/camp (call it what you will), and we have made no secret of that in previous Seeking Alpha posts. With this central view in mind we have been trying to find a market which offers a very cheap entry into a leveraged play on commodity markets. Whilst many emerging markets look very attractive they have attracted the attention of the investment community and accordingly valuations have been bid up to reasonable levels (i.e. they are hardly bargains anymore especially when you compare them to developed market equities).
