Country classification has gotten really interesting in the past couple of years with the rising interest in emerging and frontier markets. But that's probably just my inner unrepentant nerd talking.

Right now, in the wake of MSCI’s reclassification of Israel as a developed market, I’m working on a rundown of the country classifications of four major index providers: MSCI, Dow Jones, FTSE and Standard & Poor’s.

The evolution of emerging markets (and sometimes devolution of developed markets—see Greece, which could lose developed-market status in the FTSE indexes) is just particularly fascinating to me. Take some of the frontier/emerging markets that the index providers cover at the very bottom rungs of the investability ladder: Latvia? Slovakia? Trinidad & Tobago? Mauritius?

Frankly, I’m dying to know what the investment stories are behind these tiny, tiny markets. And while I believe frontier markets (like, say, Vietnam) offer some awesome investment opportunities, is anyone really itching to

(WSJ Feb 25, 2009) “The S&P Gets Its Earnings Wrong, Stocks are cheaper than they look”, by Jeremy J. Siegel

Economist Jeremy Siegel (associated with WisdomTree funds, and professor at Wharton) is an important figure.  When the Wall Street Journal published his editorial (read full article) claiming that Standard & Poor’s had a flawed method that massively overstates the S&P 500 P/E, that became something that can’t be ignored.  In fact, Siegel said if S&P had calculated index earnings correctly, investors would see that stocks are historically undervalued.

The blogosphere came alive with comments that spanned the gamut from agreement to disagreement in both polite in impolite tones.

Several of our clients called to inquire, since we have been telling them that stocks are expensive and that the index needs to fall significantly to come in line with current realities, and to be in the lower range of historic P/E valuation.

Rather

Six global exchange-traded funds track Islamic indexes, according to Chicago-based data researcher Failaka.

Nasdaq OMX Indexes is about to break into the already crowded field of index providers targeting Islamic investors.

Versions of the flagship Nasdaq 100 Index and Nasdaq Biotechnology Index are to be launched in the first quarter 2009.

Dow Jones, MSCI, FTSE Group and financial services firms including HSBC and Citigroup have long lists of stock indexes, and to a more limited extent bond indexes, refashioned for the Islamic world.

Currently, there are six exchange-traded funds globally tracking Islamic indexes, according to Chicago-based data researcher Failaka.

Three are from Barclays Global Investors' European iShares ETF family based in London. The iShares track the MSCI Emerging Market Islamic, USA Islamic, and World Islamic equity indexes. BNP Paribas has an ETF based on the Dow

Invest in a South Korea exchange traded fund (ETF) via MSCI South Korean Index Fund.

In addition, investors have high hopes for Motorola after the recent appointment of a new CEO for the failing mobile device division, but analysts remain skeptical.

We’d like to announce a new 12-page complimentary special report on Asian and Indian stocks, courtesy of our friends at Elliott Wave International.

Investment Opportunities for Asia’s Big 6 Markets will give you specific forecasts and valuable commentary …