Today I want to take a closer look at some lesser followed stock markets, particularly those outside the normally quoted bourses on the evening news, and where more opportunities are likely to be found, as the liquidity rush to find yield around the world quickens.
While the MSCI EAFE (Europe, Australasia, Far East) Index has been tracking the S&P500, other emerging markets have not experienced those relative gains:
This is interesting given growth rates for EM markets have surpassed that of the anaemic developed world – from LPL:
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And valuations using price/earnings (P/E) ratios are definitely softer:
So let’s look at some of these markets for some opportunities.
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The Brazilian Bovespa Index (BVSP) has been in a structural downtrend since mid-2012 but looks set to breakout above 55000