During his latest presentation, David Herro discusses value opportunities in international investing. Here’s an excerpt from the presentation:
Herro: When you look at the world today, we could divide it, the world outside the United States into Asia, Japan, Emerging Markets, and Europe and the UK.
When you look at those areas and based on what we believe makes investments attractive, valuations which they’re trading at, we see the greatest value and the greatest opportunity in European equities, especially in those companies that are in the financial sector, which finally will benefit from rising interest rates. That’s right.
Financial companies in Europe will actually be beneficiaries of the rising interest rate environment after having suffered through lower to negative interest rates.
And also we believe, companies involved in industrials, consumer discretionary, multinational European businesses, which are still doing quite well from an earnings and cash flow perspective, are good opportunities based on valuation.
Especially what happened this year where share prices have fallen despite rising earnings. We think these are the areas where there is the most acute value and therefore most acute opportunity for medium and long term investors.
You can watch the entire presentation here:
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