Dip may testoptimistic market view

As world equity markets dip, now seems like a good time to consider whether investors have been pricing risk correctly. The consensus view from fund managers in this month's issue is that the fall is a correction in a long-running bull market. Furthermore, emerging markets are at a discount to their Western counterparts that is not justified longer-term. In the same way that buyers of investment trusts always try to get in at a discount to NAV, so too should investors take advantage of current valuations in Asian and emerging market equities. These fund managers may well be right - hopefu...