EFTA Document EFTA01451002

11 December 2013 GEM Equity Strategy Outlook 2014 4. Low GEM valuations give some option value; The relatively low level of valuations for some GEM markets and sectors, especially in terms of replacement cost (Figure 7 - EV/NCI is a reasonable proxy for replacement cost), mean that any positive turn in sentiment is likely to produce sharp rallies, albeit in an overall absolute and relative context that remains bearish. Investors should take longterm structural positions and live with vol