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Invesco Emerging Markets Sovereign Debt ETF V.PCY


Primary Symbol: PCY

The investment seeks to track the investment results (before fees and expenses) of the DBIQ Emerging Market USD Liquid Balanced Index (the underlying index). The fund generally will invest at least 80% of its total assets in U.S. dollar-denominated government bonds from emerging market countries that comprise the underlying index. The underlying index measures potential returns of a theoretical portfolio of liquid emerging market U.S. dollar-denominated government bonds.


ARCA:PCY - Post by User

Comment by cayp21on Mar 23, 2012 7:57am
376 Views
Post# 19708781

RE: RE: Book value

RE: RE: Book value

River, I am on your side here.

 

Book value is just a reasonableness test for what one could sell their assets for (or watermark in portfolio mangaement terms).  Any market valuation above book value is sentiment which is primarily based on either profits (current or future) and goodwill (perception or brand or otherwise).

 

Currently the goodwill for a Potash company commands a higher valuation over book than a platinum company which commands a higher valuation over book over a coal company.  When comparing S+P MCD and KO commands a higher valuation over book than say JNJ or PG eventhough the ladder carries half the debt, and if you think about those 4 simplistically, people will always need toothpaste and diapers more than they need a soda and a quick hamburger.

 

Either way there is good appreciation here and these guys have accomplished much in a very short timeframe (by mining standards) and unless a red flag rears its ugly head, I will continue to hold for many years to come.

 

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