A man walks past displays on the floor of BOVESPA stock exchange market in Sao Paulo September 16, 2008.Reuters
With all eyes on America, overseas markets aren't getting the attention they deserve, says Gerardo Zamorano, a director at Brandes Investment Partners. There are many countries that are much cheaper than the U.S.—as measured by cyclically adjusted price-to-earnings ratios—and offer better growth prospects. Here are Zamorano's top three country picks.
Booming Brazil
Last year's hottest market should be hot again, says Zamorano. In 2016, the MSCI Brazil Index soared by 61%, and it climbed another 16% in the first two months of this year. With a new pro-business president, the country's struggling economy is finally growing again, too.
Try Out Turkey
Turkey has also faced political headwinds, but with a solid private sector, smart management teams and dirt-cheap valuations, there are still plenty of good investment prospects. Zamorano has 6% of his portfolio in the country, compared with 1% for his benchmark index. "We see multiple opportunities," he says.
Ravaged Russia
It's one of the least expensive markets, and for good reason: Political intrigue, sanctions and volatile oil prices have made Russia an uncertain bet at best. But still-strong financial and energy companies can be scooped up cheaply. "There are things that outweigh the level of risk enough to make it an attractive opportunity," says Zamorano.