Thursday, January 16, 2014

Doha exchage

I'd pick the Doha Stock Market in Qatar. Qatar is a country with a GDP per citizen of around $1m that will be investing aggressively into World Cup 2022 to transform itself into a destination for millions of tourists. The country's stock exchange is being promoted to the main MSCI Emerging Markets index this May and trades at under 10x earnings (versus a historic level of 15-20x) with a 5% dividend yield and likely EPS growth of 10%, backed by the government who are extremely shareholder friendly given the locals own the majority of shares. The currency is pegged to the US dollar with appreciation potential. If/when US rates start to rise, net interest margins of local banks will expand dramatically. An easy way to invest is the closed-end Qatar Investment Fund listed in London, which gives you index exposure at a 10% discount to NAV. This should easily triple over 10 years in dollar terms with minimal downside risk

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