The well bred contradict other people. The wise contradict themselves. (Oscar Wilde)

Today's presentation by Arthur Budhaghyan, Chief Emerging Market Strategist at BCA Research, has been negative on Emerging Markets overall. He is contradicting other analysts or editors of BCA research:

• China suffers from over investment (in real estates and heavy industries), and hence, profitability has been falling for couple of years. Also, the Chinese government will be more market oriented in the future and letting bankrupt countries fail. Most likely the government will introduce fiscal and monetary stimulus, should the economy seriously tank, but it will be rather lagging. This could hurt exporters (of commodities, capital goods and luxury goods) to China. Capital good exporters are Japan, Korea and Germany. 
• Russia: The fall of Russian stocks was an exaggeration of discounting geopolitical risks. But a slow down of China could depress oil prices and hurting the Russian economy.
• Brazil: Could enter recession, because Brazilian banks have to many non performing loans in their books (Brazilians are over indebted and the economy is already slowing).
• India suffers from under investment, mainly because of the lack of the populations financial savings. The country has entered a phase of zero growth. Arthur is only positive on India's IT sector, which exports to the US.

Valuation: Although valuation (P/E, P/B etc.) of emerging markets stocks are low, it is only because of the heavy market weight of badly run state companies which deserve low multiples.