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Global X Funds CEO Bruno del Ama on the opportunities for investors in the region, despite the negative economic news, as well as in Chinese banks.
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The enthusiasm over a plan to resolve the European sovereign debt crisis that enthusiasm fizzled out today but we've got somebody -- so confident.
About a resolution in Europe particularly Greece that he's investing there.
Bruno -- Lama is co-founder and CEO of global -- funds and he joins us now Bruno great to see -- well.
On a day like today it is a tough sell what gives you any indication that the Greek situation make turnaround enough so that people would buy into an ETF -- That the situation in Greece is obviously very tough by the have a ton of -- obviously he had Deborah solution -- that which was put forward was to not have the -- significantly that would make it -- potentially.
A little bit more manageable -- would be working with the exchange hopefully not misunderstand situation how our feet underground really understand what's going on.
And -- -- -- volatility I think from our perspective really what we're seeing is investor community centers for investors.
Trying to get access to Greece and do that not in a way that's cost effective when -- is -- short Greece or whether he's too.
I in this increased as a turnaround story well let's let's.
Brought the picture here and talk about Europe will what do you think disappointed people so much today when an essence.
None of the news really changed from Friday to today.
Well there's a lot of detail that's lacking in width of -- implementation of the -- the lack of detail absolutely yes I mean that the plan is the same body wise side and really just acting a realization how difficult it is implemented there's not only.
Brought number off by a sovereign countries are trying to put in place.
Also the other at the private market to bondholders side and this is say a whole entire finance -- Tutu actually implemented.
Is nobody's in I think the markets realize and let's just talk about one thing which is the money one point four trillion dollars in the spot.
We'll -- does that money come from.
While -- -- kind of from a number of sources it's obviously coming from the that -- some of the central government side primary.
Contributors -- -- that's just term portion of it I mean at our Portland -- -- up.
They're looking -- -- -- looking at -- other governments to contribute and they're looking at the leverage factor of it okay.
But you still feel that there are great opportunities in the region not necessarily eurozone countries like for example Norway.
If you look at say for example -- ETF that you watch and Howard W.
Wallets down about what 10% year to date why do you feel that this is an opportunity.
Well Norway in our opinion if you if you want to have exposure to Europe that's the better quality Euro it's not part of the EU.
Eight how -- -- swamped by the worries about a year -- -- certainly the main export partner for Norway's the European Union said the European union financial situation has had tremendous bearing in in in Europe has as its true for the whole economy and a whole continent.
But if you're going to invest in Euro clearly we view that.
I -- -- about a way to do it.
Is that primarily because they have the oil back in the mop up the oil is say is a big factor that a massive sovereign -- find that his self funded by the well.
Excess profits and so that's a big pension.
While educated population a lot of -- Norway and so that -- pretty well for them.
OK looking at China being everybody talks about China as this massive growth engine.
You specifically look at China financials.
I get nervous when I hear the word financials after anything I don't care how strong the country -- Well what we're saying with financials is to the extent that you want exposure to financials.
You certainly want to avoid to a lot of headline that's happening in Europe.
Talk to some extent of the US financial so wore much more focused on.
Looking north of the border to Canadian names I had been looking at where -- you're seeing growth that's emerging markets that's China that's for sale.
-- such an extent annual financial exposure will look at touch on the financial and aren't.
We going to see a completely different -- Europe before long one that will not include some of these countries that are in terrible trouble.
It's it's possible only it's now obvious and I remember that -- body will we have a return of the document Greece Greece separating from Europe entirely.
Well.
We don't think that's gonna happen it could happen how we think that the debt resolution program that was put in front of five the European countries increased.
Is very much a -- -- so what's trying to avoid that situation.
But it's a scenario that that could take place people are hot on dividends right now if you look at something called the super dividends -- what's in this thing and I can only imagine it's names that have very strong dividend return yet.
It's still down 12% since the month of June that makes people nervous.
Well what it does is it invests and its of 100 dividend yielding securities around the world wherever they may be and so I think one of the things that's important market we have tremendous volatility up.
Is to be able to put your money somewhere that's gonna -- -- significant dividends she can forget about the market for all collector dividend.
And wait for the market to come back eventually so that's really what it that's it looks at the top -- companies wherever they may be in the world.
Bruno del my you're -- brave -- we appreciate your coming anybody states.
Europe by the -- right now is -- thank you for coming in --
