Stephanie Link Sells India ETF (INDA) for Brazil ETF (EWZ) on CNBC

Stephanie Link's Portfolio Shift

• 💡 Stephanie Link, CIO at Hightower, has sold her position in the India ETF (INDA).
• 🎯 She has redeployed this capital into the Brazil ETF (EWZ), citing Brazil as a more attractive investment currently.

Rationale for Investing in Brazil

• 🇧🇷 Link believes Brazil is much cheaper than India and sets up well for growth this year.
• 📈 Brazil's GDP is projected to grow at 3.4%-4%, with easing fiscal and monetary policies expected to further propel the economy.
• 🏭 The country has a strong focus on manufacturing, mining, and agriculture, which are key sectors for investment.
• 🏦 The top 10 holdings in the EWZ are primarily financials, an area Link finds appealing.

Perspective on India Investment

• 🇮🇳 While Link has sold her INDA position, she still likes India for the long term, over the next decade.
• 📊 India's ETF was flat last year, though it was up 25% the prior year.
• 💰 Link would have held onto India if she had available cash and may look to add back to the position later.

Global Market Outlook

• 🇺🇸 Deutsche Bank remains bullish on the US but has closed its tactical Europe overweight.
• 🌍 Last year, many developed and emerging market stock markets outperformed the US, largely due to multiple expansion.
• 🚀 In contrast, US large caps saw earnings growth outpace share price increases, resulting in multiple contraction.
• 📈 Link suggests that if overseas markets can justify their rerating with revenue and profitability growth, this trend of international outperformance could persist for several years.