reason to be wary of Chile, not only for its direct trade exposure to China, but also for its indirect exposure via Chile’s trade partners. We also suggest avoiding South Africa as a result of its high exposure and overvaluation. By contrast, Brazil looks attractive, in part because it is approaching the end of its rate-hiking cycle. Figure 1: Avoid South Africa, Favor Russia (equity valuation and combined Fed and China exposure indicators) Valuation Score (relative, P/B over DM/EM Avg,…
Words 3113 - Pages 13