Related: Brazil ETFs Roar Back as Government Incompetence Ends
Some investors are reevaluating Brazilian stocks, something that has benchmark indexes there trading at the highest multiples in a decade. However, Brazilian assets became more appealing this year thanks to the weaker dollar, stronger commodities prices.
“A change in Brazil’s government also is a good sign, Boockvar said. Brazilian President Michel Temer assumed his duties in May 2016 after former President Dilma Rousseff was suspended while facing an impeachment trial as a result of corruption allegations,” according to CNBC.
Related: Brexit Opens Opportunity for Europe ETFs
According to JPMorgan Asset Management, the European stock market has gotten too cheap to resist, with valuations on the MSCI Europe ex-UK Index and the FTSE All-Shares Index at attractive valuations when their price-to-earnings ratios are adjusted for inflation over the past 10 years, reports Aleksandra Gjorgievska for Bloomberg.
Adjusted for inflation, the MSCI Europe ex-UK Index traded at 15 times earnings at the end of June, compared to its long-term average of 19.4 since the 1980s. The FTSE All-Share Index was trading at 12.3 times earnings, compared to a mean of 17.
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