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Glenmede Trust Director of Investment Strategy Jason Pride on why emerging markets will benefit from the Greek deal and how investors can profit.
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There's always a trade isn't there of the debt deal -- Greece from default with a strategist to says investing overseas in certain areas.
Is a very Smart play for your portfolio if you know where to put your money.
Joining us now guys think you know Jason pride let me director of investment strategy are so no matter what.
That this deal you can still make money off -- in certain areas and that would be companies that I assume do global business what are we looking at let's.
Get to your first -- chase.
Sure -- generally VD thought process is that the the European situation now that it's coming coming out that they're they're really trying to put in place the backstop and stabilizes situation.
One of the primary beneficiaries is emerging markets.
Where there are a lot of links whether -- European banks -- just to the overall global economy.
That the European situation could make the emerging market story be more be more disrupted.
Now that -- beyond that we can look forward to the growth there in the growth of the emerging market consumer our primary are one our first recommendations is a simple when you Colgate-Palmolive.
Which is you're an international company less than 20%.
Of the revenues come from within the United States -- good large -- shouted from.
Asia and emerging markets -- is a Latin America.
In all these markets you have big growing middle class base that lets just face is removed from lower income levels -- income levels.
You -- two things you actually end up.
Brush your teeth are using some of these other goods more or yeah actually trade up to the higher price items.
All of which plays writings there will house and their product base in trying to sell off the middle market consumer.
And they've been doing -- a long time they know how to get shelf space in emerging markets as well as markets here in.
The bigger developed nations let's get to your next pick Philip Morris international big tobacco play here.
So this was not nearly as healthy of an idea is Colgate-Palmolive you know -- one place we're talking about brushing it did the others.
Situation we're talking about the propensity for consumers and -- more to generally smoke a little bit more.
And this is a company no position within the United States.
Fairly large position in emerging markets and actually we've seen that -- those consumers increased their their income base from you again we're talking about fifteen to 20%.
Wage -- in many of these nations they increase their their intake of tobacco products.
And they are obviously the biggest beneficiary -- -- to increasing their intake of soft tacos and pizza that's for sure as well as when you see that young brands that's your third pick.
Has done extraordinarily well particularly.
In the Asian region and not just China but Taiwan as well.
Well in in reality they have the most exposure to the emerging market based.
With about 36% of their revenues coming from those primary markets specifically focused.
Initially in China and they have a great brand there.
Here you go overseas and and its new -- -- KFC.
Doesn't look anything like it looks like in the United States.
And in the emerging markets is actually even consider -- more upscale.
In the in the realm of my competition I heard it looks like go to place.
Heard it looks like had no -- and that that's a fancy to Asian restaurant here and that they actually have weddings -- -- -- KFC it's a Pizza Hut.
Jason great to see you thank you for those three picks Colgate-Palmolive Philip Morris and to -- national and Yum! Brands.
Opportunities in the emerging market by playing it safe here in the US thanks so much good to see.
