Is Today's Trend Eastward?

Among the world's largest stock markets, India and China are the two priciest, selling at 4.9 and 4.6 times book value, respectively. By contrast, Japan, Korea and Taiwan sell for no more than two times book value. And of those three stock markets, Taiwan has the most promising metrics: 26% expected earnings growth in 2007 and an estimated 2007 price/earnings ratio of 14. (For China, the p/e ratio is 26.)

Investing in such foreign countries is easy today, thanks to mutual funds, exchange-traded funds, American Depository Receipts, U.S.-listed foreign shares, and even online trading of shares on foreign exchanges.

Some discount brokers now have online trading platforms that allow you to buy stocks listed in Europe and Asia.

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