Best Stock for 2013: Global X Funds Greece
We move across the pond for this next pick, which comes courtesy of Mebane Faber, portfolio manager at Cambria Investment Management. His team looked at the historical cyclically adjusted price-to-earnings ratio (CAPE) of 32 countries and found that extreme lows have signaled great buying opportunities in the past.
Sure, the countries that were cheap came with lots of bad news and, in most cases, crisis … but they also came with solid returns for those who snatched them up at the lows.
With that in mind, he is recommending the MSCI Greece Fund (NYSE:GREK), as Greece is trading at at 10-year CAPE of 2.49 — the cheapest of all countries. For comparison’s sake, just consider that the U.S. goes for a CAPE of 21 right now.
It’s only crazy if it doesn’t work.