Plenty of Opportunity in Emerging Markets: Faber

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Sept. 17 (Bloomberg) -- Mebane Faber, CIO of Cambria Investment Management, discusses investing in emerging market ETFs with Matt Miller on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

At some of his favorite emerging market etf's. this is an area that hasn't gotten a lot love lately from the big-name analyst.

Emerging markets have had it really rough lately.

But a different set from the set that you are looking at.

It is hard to look at the emerging markets and the u.s. doing so well.

A lot of developing markets are down.

But that creates opportunity to a lot of these -- opportunity.

A lot of these countries are negative on the year and trading at super low valuations.

There will be plenty of opportunity for those valuations to play catch-up and the emerging markets to do really well.

Chris had the measure that?

-- how do you measure that?

Where do you find the best deals?

Typically, most of the valuation indicators and up on the same side.

Our favorite is 10-year smith price earnings adjusted for -- 10-year smooth price earnings adjusted for inflation.

If you look at that, the u.s. is a little expensive, but most of the rest of the world is really cheap.

Europe, russia, italy, ireland, and a lot of them are trading at minimal digit p/e ratios.

That leads to pretty big returns in 3-5 years.

We are looking at your favorite picks in greece, ireland, italy, russia, you have a separate etf for those investment baskets?

Not yet.

We have a shareholder yield in the u.s. and in the global tactical, we advocate to a lot of these individual foreign countries through other etf's. you can gain exposure to ireland or russia or even a broad basket of the emerging or developed markets that we think will outperform the u.s. in the next 1-5 years.

Thank you so much.

We are on the market again in 30 minutes time.

This text has been automatically generated. It may not be 100% accurate.


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