Pakistan is currently called: "the world's most dangerous haven". This newspaper calls it "the world's most dangerous place". Mark Matthew of Merrill Lynch calls it "the greatest information-arbitrage opportunity in the world." He may be right. Since the start of the year, when Pakistan was reeling from the assassination of Benazir Bhutto, it has been the best performing stockmarket in Asia. More evidence of madness in financial markets? Probably not. Its politics are bleak but the economy is expected to grow between 6.5% and 7% in 2008. Its companies continue, on average, to have a high dividend - 4% and a low price/earnings valuation - under 15 times. Perhaps its main salvation is the lack of foreigners in the market: that means fewer people to panic about the security situation - or the subprime situation back home.
