The rise and rise of Europes 'underdog' markets

Shares in Polish e-commerce group Allegro rocketed up 60% on their debut, giving the e-bay style online retailer a whopping market value of almost $19 billion and making it Europe’s largest initial public offering (IPO) so far this year. With explosive growth expected year on year as buyers continue to move online for one of central Europes most recognised online brands, Investors are demonstrating, once again, that there is a growing interest for some of Europe’s ‘underdog’ stock markets.

In fact, in 2019 the best performing stock market in Europe was Greece, it’s main index rose an eye-watering 43%

Last week @pb1 wrote a piece asking us to ‘Look Around’ and with Pynk’s ever-expanding global crowd, it would seem we are perfectly suited to combine this growing trend for emerging European markets with Pouneh’s sound, financial considerations.

Which markets do you think are the ones to watch?

Will US stock markets fall from grace post-COVID or bounce back?

What tips can you offer Pynksters when you ‘Look Around’ the country where you live?

Disclaimer: This information does not constitute any form of advice or recommendation by Crowdsense Ltd. and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision

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Tech stocks are always good to watch. I’ve liked health sciences for quote a while now, bit I think especially important now due to CoVid.

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I agree with @KarenM. COVID has made people to be more focused on gadgets. I think the tech and e-commerce are the ones to watch.

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Although I like tech companies, I think valuations of Big Tech are unbelievable right now and have no relation to what we can reasonably expect these companies will achieve in the future, I don’t think now is the time to invest here because prices are crazy.

I agree to be on the lookout for the e-commerce industry, but again, I wouldn’t go for the typical Big E-commerce company like Amazon, currently trading @ 125 forward P/E :exploding_head:; here thinking of the ‘Look Around’ tip, for example, in Ireland -and I’m sure in the UK as well- Deliveroo is booooming, they must have doubled or tripled their operation in the last 6-9 months, and I believe their IPO is coming soon, now that’s an interesting e-commerce company to have in the radar. Another similar kind of niche e-commerce company like Rappi: consumer tech startup looking to be the “ everything store”. I know is booming as well in Mexico and Latin America in general because of Covid.

I’d summarize by saying that with the Covid situation not going away any time soon, emerging e-commerce/delivery /stay-at-home service companies should be markets to watch out for.

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Totally agree with you Carlos re some Tech valuations. My other problem with the obvious online shopping plays etc is that although their growth seems assured, it’s very difficult to expect the year on year comparisons as we go into 2021 to be very good (and potentially disappointing) when compared to the massive boom in the spring of 2020. So this difficult year on year comparison on top of stretched valuations makes me cautious.

There are always winners however bad things get and I too have been wracking my brain for Covid beneficiaries at attractive valuations. One big theme in my personal portfolio that has done really well over the past few years is what I call ‘alternative sources of funding’. As banks have retrenched and become unwilling and unable to take the risk of launching new products in niche funding areas, a great opportunity of really nice profitable specialist funding niches has opened up in a number of areas. Without competition from the banks, these niches are highly profitable for some niche funding specialist companies.

I’m going to write a whole piece on this but within this whole theme, I’m very excited about the prospects for Litigation funding specialists - their business booms in the aftermath of downturns as corporate disputes inevitably increase in tougher times. Interestingly, litigation funding business boomed even more so in the aftermath of a massive one-off event like the 2008 crisis, so I’m betting the next two years will see a similar sizeable upturn in business for them. Stay tuned, I will be writing on this in detail…

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For me a market to close follow is Brazil in South America.

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Interesting point @ejcabanillas. Emerging markets are definately a growing trend in the ETF sector and seem to be making some quite positive returns. Brazil, India and parts of Africa are often amongst the key players in that field.

Disclaimer: This information does not constitute any form of advice or recommendation by Crowdsense Ltd. and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision

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I wonder what peoples thoughts are on emerging markets?

Do you guys feel there are some even lesser known markets investors might want to pay attention to?

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I understand that lately, with US-China tensions only getting worse, Indonesia, Malaysia and Vietnam are directly benefiting from companies moving their investments & production out of China.

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In this particular moment I think thatvhealth sector will be one of those who will benefit the most
I’d look for sure for any of company in the health sector not only for the vaccine, even gor the rapid covid test. There is one company in my country very advanced on this and it is called Diasoron (DIA).

I am also intrigued very much by the AI and AR market and all the technologies running around it…processors, graphics processing cards which will be always smaller in size and HR video cameras.

Another market is related to materials especially graphene and nanomaterials manufacture.

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It’s not technically emerging markets per se, but I do feel people aren’t taking enough notice of the fact that Asia is enjoying a powerful V-shaped recovery, far stronger than the West is (probably because they got to grips much more successfully with Covid). If this economic outperformance continues, it would be difficult to imagine a scenario where those markets don’t outperform on the back of this.

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I like Estonia, they are a very forward thinking country that have embraced technology for a long time and there are many clever people starting innovative tech companies there. Finland is another one but with more of a focus on gaming, they also have the most people working in R&D fields per capita. And thirdly Israel, they are pretty good with technology, especially software.

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Hello, I think that US stock markets after COVID go up , but when this happens depends on the authorities and the desire to restore the markets, because chaos leads to maximum profits government.

I also think we need to keep an eye on the European assets market, since Biden won

For offer Pynksters i think Look on the “crypto ruble”, as well as the mineral markets, which will definitely be adjusted for growth.

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