The Dubai Market Dropped 25 Percent. It's Still Overvalued - Businessweek

The Dubai Market Dropped 25 Percent. It's Still Overvalued - Businessweek:



"Dubai’s stock market is in the midst of an epic crash. After falling 6.7 percent on Tuesday, the biggest drop since August, Dubai’s largest stock index, the DFM General Index, is down 25 percent from its peak in May.



A sell-off that steep usually presages a nice buying opportunity, but it looks as if Dubai stocks might have further to fall. Relative to other emerging market stock indices, Dubai’s remains overvalued.

Bloomberg | Dubai stocks remain pricey 

                     

As Bloomberg’s Chart of the Day shows, based on a ratio of price to current annual earnings, Dubai’s DFM General Index is 37 percent more expensive than the MSCI Emerging Market Index. Unless you think that Dubai’s fundamentals are stronger than they currently appear, any buying opportunity might be a few weeks away."



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