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 Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

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!