Trading Bloc Positioning: US, Canada Markets Expensive, EEM and EFA Cheaper

08/24/2018 5:00 am EST

Focus: STRATEGIES

Ziad Jasani

Managing Director and Partner, Independent Investor Institute

U.S. & Canadian markets present as the most relatively expensive while Emerging Markets (EEM), and the Eurozone Far East & Australasia (EFA) present as cheap (on annual routines), writes Ziad Jasani Sunday. He’s presenting at MoneyShow Toronto.

chart

View my Market Strategy Session video here:
Recorded: August 17, 2018.
Duration: 1:29:31

This chart compares major trading blocs back to the entire global equity market (ACWI), to determine which spaces are relatively cheaper or more expensive.

chart

Why? Capital flows usually tilt towards relatively cheaper spaces.

The TSX presents as 2 standard deviations expensive, which implies the TSX is likely to under-pace the world on the way up and/or move faster down.

If markets rise, expect out performance from Equities out-side of North-America. If markets start to move down, expect North American markets to start moving down at a faster pace vs. the World. 

Join Ziad at MoneyShow Toronto Sept. 15 when he discusses Portfolio Management Strategies for Active Investors. Information: ZiadJasani.TorontoMoneyShow.com

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