EFV iShares MSCI EAFE Value ETF : Bullish and Bearish Analyst Opinions

"There's been a real flow from basically tech growth in US markets to global value outside of the US. It outperformed tech in the last year by 40%." Smart money is rotating out of crowded, overvalued US Tech/Growth trades and into undervalued international markets. This trend is expected to continue as US markets face valuation compression. Long International Value (represented here by EFV) as a relative value play against US Tech. Global contagion if the US market crashes significantly.

Meb highlights that while the US is at ~40x PE, the rest of the world is in the "teens" or "single digits" (specifically mentioning Brazil). He notes "European banks outperforming Mag 7" and a rotation into value. Valuation spreads this wide historically lead to a rotation. Investors seeking yield and reasonable entry points will flow from the expensive US market to cheap International Value and Emerging Markets. Long International Value (EFV) and specific cheap EM countries like Brazil (EWZ). A global recession drags down all equities regardless of valuation; US dollar strength.