P/e ratio of brazil stock market

Based on market performance, fundamentals and political risk, select markets in Latin American and Asia offer the best potential for investors in The first month of is over, so now we have the first data points of how stocks are doing in the new year. The large majority of stock markets worldwide were up in January - a bullish sign for equities. This was the case for much of as well. Only after the post presidential election rally in U.

Latin America was the top performing region for stocks in Brazil and Peru had two of the highest currency-adjusted returns in the world. The one dark spot in was Mexico NYSEARCA: EWW which was one of the worst markets globally and the one most damaged as a result of Trump winning the U.

Global Stock Market Valuations and Expected Future Returns

EWZ , Peru NYSEARCA: EPU , Chile NYSEARCA: ECH , Mexico and Columbia NYSEARCA: In a replay of Brazil led world stock markets, and Peru was close behind. From a fundamental perspective Brazil is very cheap based on a CAPE cyclically adjusted price earnings ratio over a year period of 9. On the pricier end of Latin America is Mexico, which began the year with a CAPE of Blue line Brazil, Red line Peru, Orange line Chile, Yellow line Mexico, Brown line Columbia.

THD and Taiwan NYSEARCA: EWT wound up significantly outperforming it by the end of the year. On the downside, stocks in Vietnam did even worse than those in Mexico. Eight Asian markets - Taiwan, Hong Kong NYSEARCA: EWH , India NYSEARCA: INP , the Philippines NYSEARCA: EPHE , South Korea, Thailand, China NYSEARCA: FXI and Vietnam NYSEARCA: VNM did better than the U. From a fundamental perspective, stock markets in China and South Korea are the cheapest in Asia. At the beginning of , the CAPE in China was Comparable numbers for South Korea were The CAPE for its stock market was Light Gray line Taiwan, Light Red line Hong Kong, Blue line India, Brown line Philippines, Dark Gray line South Korea, Dark Red line Thailand, Orange line China, Yellow line Vietnam, and Green line Indonesia.

Europe was the region of the globe with the overall worst stock market performance in However, a few markets did do so in January. EWG did the best, but markets in Spain NYSEARCA: EWP and the UK NYSEARCA: EWU also ran ahead of U. Ironically, Italian stocks were relatively cheap compared to other markets on a fundamental basis at the beginning of the year. Spain is somewhat pricier based on fundamentals.

Both countries have low-growth economies, however, so high values for fundamental measures are not justified, as is the case with most of Europe. Denmark not shown in chart is the most overpriced European market, starting the year with an incredibly high CAPE of European Stock Market Performance in January Blue line Germany, Orange line Spain, Red line UK, Yellow line France, Brown line Italy.

Global Stock Markets That Look Best For | Seeking Alpha

Finally, let's take a look at markets in countries with commodity-based economies. In , stocks in Russia and Canada substantially outperformed the United States. RSX ended the year with one of the biggest returns of all stock markets globally.

Ironically, it was down in January. EZA , Canada NYSEARCA: EWC , and Australia NYSEARCA: Based on fundamentals, Russia could be considered the cheapest stock market in the world.

It began with an incredibly low CAPE of 5. South Africa was a little less expensive.

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Blue line South Africa, Red line Canada, Orange line Australia, Brown line Russia. So far, in , not that much has changed in global stock markets that would justify altering portfolio distributions from late in Political risk is still an important criteria for a number of countries. For Mexico and East Asian countries, Trump administration trade policies might slow their economies and this would damage their stock markets.

Europe faces the risk of Eurosceptic political parties winning elections in Italy faces a banking crisis that could blow up and spill over into the rest of the EU. Russia, however, faces reduced political risk with a likely thaw in relations with the U. Based on January performance combined with fundamental analysis, investors should be keeping most of their stock portfolio in investments outside the United States.

Brazil, Peru and Russia were the three top performers in and that is where investors should still have a bulk of their holdings.

The world's cheapest markets in

Some investment in Taiwan is also justified. In general, holdings in stock markets in Europe and Mexico should be avoided for the foreseeable future.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha.

I have no business relationship with any company whose stock is mentioned in this article. Global Stock Markets That Look Best For Feb. New York Investing meetup.

Summary Almost every stock market in the world was up in January, a bullish sign for the rest of Asian Stock Market Performance in January Light Gray line Taiwan, Light Red line Hong Kong, Blue line India, Brown line Philippines, Dark Gray line South Korea, Dark Red line Thailand, Orange line China, Yellow line Vietnam, and Green line Indonesia Europe was the region of the globe with the overall worst stock market performance in European Stock Market Performance in January Blue line Germany, Orange line Spain, Red line UK, Yellow line France, Brown line Italy Finally, let's take a look at markets in countries with commodity-based economies.

Commodity Countries Stock Market Performance in January Blue line South Africa, Red line Canada, Orange line Australia, Brown line Russia So far, in , not that much has changed in global stock markets that would justify altering portfolio distributions from late in Macro View , Market Outlook. Want to share your opinion on this article?

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