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United Capital CEO Joe Duran explains why you should invest your money in companies off shore.
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Felt like you very much appreciate it.
Where this slow growth US environment should you be looking to invest abroad my next guest says investors.
Should look overseas to emerging markets as -- -- base of course of potential consumers.
Joseph Doran CEO of founding partner tonight.
-- joining me now with this story -- Well with QE3 in the market's doing fairly well when you look at -- to -- in the S&P why would you want to invest your money on right here in the US.
I think you did I think you wanna be investing in the US but you invest in companies that also invest.
Make money they'll show.
So the big conglomerate -- consumer Staples companies.
-- big global technology companies.
They -- generate thirty to 40% of their revenue -- offshore.
And a fact most of that growth is coming from the growing middle class and the rest the world so we like investing in emerging markets but we like doing it for US companies that.
We now have that stable accounting.
Any particular country is that you like -- and we think we think that China and its influence on all those other emerging markets -- any countries in particular that you like.
What's so there's a couple of things that we like to think about one has what's happening.
In a secular sense in the generational sense and what's happening in a cyclical sense and there's no question.
Right now the risks a very much in China and providers to China that includes Brazil.
And most of South America.
Which -- bandits to the Chinese economy -- cyclically.
China has a little bit dangerous on that in a secular sense it's a very interest staying long term investment.
But I think what you want to do is bet on a growing middle class throughout the world.
And invest in companies that provide that middle class with -- that they recognize and and despite time.
And brands even as simple as Coca-Cola mcdonalds yet to that cigarette manufacturers because again -- -- Attempted to do a lot more -- -- that we do here in the US.
That's true.
So how do you play this that Joseph do you like ETF -- -- broadly.
Played the regional do you like -- go with the individual stocks.
You know -- depends on how much money you have we typically manage all of our -- clients network.
And we like to diversify so what we try to do is on EPS because frankly get a broad range of investments and they're very good ones.
I like the global consumer brand.
ETFs you can also do -- mutual funds and you can of course on the individual securities.
We don't recommend individuals do that themselves they should have a professional helps to select a portfolio that takes care of that -- which we did.
It's very dangerous if you just go buy yourself doing all the work that needs to be done to rebalance to make sure you're not over invest in one country vs another.
A lot of uncertainty right now certainly would -- presidential election coming up in fifty days ago the fiscal cliff and so on there's a lot of thought -- clouds looking out there are at least.
You know those that could bring certainly concern to investors what are you telling your clients right now you leaving on the conservative side.
Well what we tell everyone has nobody makes money when -- on any rain clouds and I know that's -- -- completely counter intuitive but if it looks great.
And is another risk that that there -- been Ambac gets priced into stocks and you up price typically.
In a very bullish way which is not good for you and a long time -- You actually want to see consents and stalled clouds because that's the only way you ever make money in stocks over the long term.
The second thing we tell them -- be invested in ways that allow you to protect -- multiple scenarios.
Not try to make bets in and out of the market but being diversified so that.
Whoever -- you're okay.
And the third thing -- telling them is the biggest thing holding the market back right now is uncertainty.
And and whoever wins we will have certainty that we're -- well -- -- the other and I think what you might see post election regardless of who wins.
Is a removal of uncertainty that will allow us to actually.
C a rally toward year end and I think that might surprise a lot of people.
But I think we're pricing and had this -- moved by -- by the Fed.
-- things and Obama's direction we're still gonna have a Republican House and senate yep leading senate and -- I think you're gonna end up with -- same stalemate.
And a big battle little -- of the that fiscal Clift that's that's coming.
-- more -- saying oh boy -- Joseph Doran they have so much for joining us lots of great information presented.
