If Siegel's theory has global implications, then the P/E ratios for iShares Brazil and Market Vectors Russia are not attractive enough when interest rates are taken into account. Whereas the U.S. has a three-month of just 0.13%, Brazil's three-month is at 12.2% and Russia's three-month is at 8.2%.

On the other hand, it's equally plausible that central bank policy direction is a larger factor than the interest rate categories. If China achieves its aim of reasonable inflation and moderate growth, it will end its rate hiking campaign before too long. Same goes for India. When these events transpire, expect resource-rich ETFs like Brazil and South Africa to be leaders in the emerging market pack once more.
Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

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