J.P. Morgan Funds’ VP Insight on Markets: Europe, BRIC and South Africa

In a recent interview on CNBC, Andres Garcia-Amaya, JPMorgan Funds’ Vice President and Global Market Strategist, explained why he likes Europe better than the U.S. in terms of where to invest, and made his case for emerging markets. Let’s look into some of the highlights:

Europe is an earnings play, Mr. Garcia-Amaya states at the beginning of the interview:

“If you look at the U.S., earnings are 22% above their 2007 levels; if you look at Europe, they are 30% below their 2007 levels. Starting from a much lower base, I think earnings could grow at double digits, while here, in the U.S., they could grow at single digits”

India’s ETF, the WisdomTree India Earnings Fund (ETF) (NYSEARCA:EPI), go nothing but higher, one reporter stated. Although it pulled back a bit on today’s trading, it’s been actually really strong all year long. Is it over? – he asks – Has the valuation gotten to a level where you no longer like it?

India was both a value play and a momentum play, right with the elections, Mr. Garcia-Amaya considers.

“I think value is not as attractive as it was before; it’s kind of back to historical averages. It’s not expensive, but I do think that if [the new administration makes the changes that it said it would]… there could be some structural changes that could really propel earnings in India over the next couple of years. So I still like India, but not so much just for valuation, more for the earnings story there.”

Where do fund flows go? Most funds are investing in India right now. But where are they headed? Do they go to Brazil, China or Russia?

Russia looks, to Mr. Garcia-Amaya, the most interesting.

“Talking about valuation, that is the one place where valuation looks really attractive. China looks attractive from a valuation standpoint but (…) it could stay cheap for a long period or time.”

For its part, “Russia is starting to see some catalysts from the Ukraine situation starting to stabilize. Maybe not improve, but at least stabilize. So between China and Russia, I prefer Russia,” or Sri-Lanka, or Thailand, which continue to grow at attractive rates.

Finally, Mr. Garcia-Amaya addressees South Africa. He says that it looks a little bit expensive, and highlights that “they’re one of the countries within the Fragile Five that hasn’t addressed their current account deficit situation, similar to Brazil, so they benefit from lower rates here.” And it looks to be calm, but JPMorgan Funds’ Vice President thinks that they’re not out of the woods yet.

Watch the full video below:

Disclosure: Javier Hasse holds no interest in any ETFs or Funds mentioned

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!