Determining when a stock truly is cheap is more complicated than it seems, but there's a good case to be made for buying emerging-market stocks, according to The Economist. Morgan Stanley said the price-to-book ratio for emerging-market stocks is 1.65, less than the average for the past 20 years, and the forward price-earnings ratio is in single digits. "So there are certainly signs of value outside the U.S., although the case is not overwhelming," the magazine's Buttonwood columnist writes.

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