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

Comments
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

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

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!