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Global X Funds CEO Bruno Del Ama on how investors can boost their portfolios by investing in emerging markets.
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Now we have a strategist.
Who says the best bang for your buck may actually lie outside the United States are not -- Lama is co-founder and CEO of does that surprise you -- global -- funds okay which parts just tell us what part of the -- -- think it will be better than the US.
-- it's it's like emerging market side now we actually like China all law outside there's a lot of negativity towards China around lots.
And -- the violations because of that are actually fairly attractive and so we like to China trade.
I generally in emerging world -- like the -- consumer -- consumer economy.
In in China and in Purcell.
Would you avoid the United States -- -- something about what Ben Bernanke Sadr something about what Ben Bernanke may be doing that that concerns about the United States investments.
Now -- I would not -- the US the US -- -- doing reasonably well in the house expected in our project are these companies come countries and companies outside the US going to do better than those inside the US.
Certainly from a -- some perspective we we do lights are not sectors solve the emerging world we -- we do think those will do better particularly in China because of violations.
I -- -- set but what you think the US will do well but again it's going to be a slow process because there's so much that -- the US that's a long process to get over that.
I'm so there's going to be some volatility an important senators to have a diversified portfolio.
Let's talk about a couple of other countries that aren't necessarily emerging but for example -- neighbor to the north Canada.
-- we've recently had some pretty Smart people come on and say.
Look the Canadian dollar looks pretty.
Solid and these are companies they didn't get caught up in the sub prime disaster.
That Canada is an opportunity to look at a country -- that are anywhere else that's stable to say we like it there too.
Wait would generally like god commodity producer countries so it was a candid -- seismic factor of that having said that they're somewhat reliance on going back out to China and did that did demand the output coming out of China.
So it's an extent that economic growth in the US continues and accent -- all the money you've been talking around.
That's been pumped an economy -- walks its way through that's positive for -- commodities saying countries such as Canada has also strong.
Our fiscal -- economy they're they're opposite pretty while.
People who are bullish on China they see the slowdown in growth but they say that's because as a revolution going on there the consumer.
The Chinese consumer has been cut out of the mix because have been focused on exports.
Now they're focusing internally and you have those billion people in about about 110 of whom are in the middle class and can buy a lot of stuff produced internally.
You have a stock pick fund that focuses on the Chinese consumer than the ticket symbol is CH IQ.
Tell us that that's a find out that we manage -- should point out and and -- we're very bullish on that sector of the economy would have a number of -- -- sector finds.
But in particular that's the one we like because again.
The incomes -- -- China you have a very large middle class act.
-- get down sides opera both consumer Staples in consumer discretionary see how the whole range from auto manufacturers.
To our company like -- which is sort of equivalent off I ninety.
-- in China sort of runs to dominate you know seeing towel on so you know -- sort of beer maker Iran Saddam is through discretionary Staples.
I know the beer maker very well from that back.
The consumer side the product OK but you say no matter what you really have to focus on splitting your portfolio in four ways equities bonds.
Cash and commodities -- meeting just gold and silver.
Will die but you know as diversified as you -- would like -- will like silver -- -- some exposure to other not commodities such as copper aluminum of the old classic 60% stocks 40% bonds that's debt that model is no longer good.
Well a lot of people and that's not what it would I think that's the right way to invest that you're not properly diversified when you invest in -- way we're talking a lot about inflation I you don't have enough inflation protection -- -- portfolio.
I you need to hot commodities and it's -- -- gold units not other asset classes are gonna carry you through us through different economic environments.
Per -- Lama co-founder and CEO of global -- funds thank you thanks for -- good to see you thank you.
It's.
