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June 18, 2015, 11:05 a.m. EDT

Investing in the world's cheapest stock markets

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About Nicholas A. Vardy, CFA

Nicholas A. Vardy is Chief Investment Officer at Global Guru Capital, a fee-only, SEC-registered investment-advisory firm where he manages money for high-net-worth clients. Vardy is also the editor of three investing and trading services at NicholasVardy.com. He appears regularly on the Fox Business Network and CNBC Asia, and is a highly-rated speaker at investment conferences around the globe.

Nicholas regularly contributes his market views on his company blog. You can also follow Nicholas on Twitter @NickVardy or email him at nvardy@globalgurucapital.com.

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By Nicholas A. Vardy, CFA

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Other cheap stock markets include Russia and Japan — two markets that have done very well through the first five-plus months of this year.

The much-reviled Market Vectors Russia /zigman2/quotes/200464876/composite RSX 0.00% has surged some 24.13% year to date. The perennially out-of-favor iShares MSCI Japan ETF /zigman2/quotes/201162210/composite EWJ +0.73%  is up 15.3%.

The year-to-date moves higher in these cheap markets suggest that the smart money has started to recognize the merit in attractively valued markets.

How to make money in cheap global stocks

One exchange-traded fund (ETF) that invests purely based on one of the criteria listed in The Telegraph study — the CAPE ratio — is the Cambria Global Value ETF /zigman2/quotes/201584704/composite GVAL +1.85% .

The very opposite of a sexy cyber-security or biotech stock, GVAL is chock full of the world's most hated and obscure stock markets. It's top five holdings are in Russia, Greece, Ireland, Poland and Italy.

Still, GVAL is up 7.02% year to date, comfortably outperforming the U.S. S&P 500 by more than three to one. Also, GVAL is currently technically oversold, 11.91% off its recent highs, and due for a strong bounce.

So I recommend you hold your nose and invest in the Cambria Global Value ETF.

Just don't expect it to earn you bragging rights with your buddies on the golf links in La Jolla.

Disclosure: Vardy owns GVAL.

US : U.S.: Cboe BZX
$ 5.65
0.00 0.00%
Volume: 0.00
May 17, 2022 4:10p
US : U.S.: NYSE Arca
$ 56.43
+0.41 +0.73%
Volume: 4.67M
May 17, 2022 4:00p
US : U.S.: Cboe BZX
$ 20.10
+0.37 +1.85%
Volume: 7,100
May 17, 2022 4:10p

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