Fair value in Developed Markets

The paradox of the current state of stockmarkets is that many of the mature economies struggling with the aftermath of the credit crunch offer better investment opportunities than those 'emerging markets' that did not binge on debt in the way their western counterparts did.

The low debt, high growth profile of countries in Asia and Latin America has attracted colossal sums of money from western investors in the past two years, seeking higher returns than they cannot get in their home countries.

However, in the past month that trend has come to a screeching halt as investors realise that the flood of money has pushed emerging markets too high and exacerbated their problems with inflation.

Meanwhile, shares in many western companies now look good value. Big multinationals in particular have slashed borrowings and costs in a way that western governments have only started to do. As a result they are enjoying a boom despite the economic gloom of many of their established markets.

Let's look at five funds seeking to capture this opportunity before it too disappears.

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