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Scout Investments Chief International Strategist James Moffett on how investors can boost their portfolios with overseas investments.
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-- the US struggles to figure out the fiscal cliff is it time to invest your money abroad overseas and while Europe because have money problems of its own -- -- them -- in the statement.
Joining us now is James Moffett -- investments chief international equities strategist it is a Fox Business exclusive.
James thank you very much for joining us.
The scalp international fund up 20%.
Year to date how did you manage to do that.
Well it's been made up mainly issue selection we've been had a substantial waiting Europe round little over 50% that's a little underweight compared to the -- but.
We've had a substantial -- there and then within that.
It's basically -- issue selection -- minutes are our largest weight within Germany has been Germany within Europe but.
Within Germany there the companies have done well and in general the -- it's been.
Is -- issue saw action that's work.
For us it's interesting James has when you think -- investing you think of that areas that are doing well Europe is certainly not one of them now of course you mentioned Germany.
But even Germany's been dragged down a little bit by what's going on in the region as a whole how do you pick the stocks he -- the multinationals don't you.
We like the multi nationals most of the ones that we've we've invested in our -- nationals they're not.
Totally tied to their domestic market.
Italian companies like quixotic and its -- class frames around the world up.
In detects and Spain.
That sells apparel around the world Volkswagen that sells cars around the world me at all.
Multi national companies that that are doing things right in this environment some.
We think that that's that the formula is -- but a broad based market and the people that are are executing within that.
But aren't you concerned about continued.
Volatility in that area you know we've got the Italian elections come map in February got German elections not far behind that some.
You know has to be seen whether Angela Merkel can.
Survived factors -- give you pause for concern.
Well there's plenty to worry about there's no question about that end up.
You know.
-- every election this happened I think in Europe.
In the last two or three years the incumbents been up.
Evicted from office so.
You know you can worry about Angela Merkel but all of my our guess is that she's so doing better than the rest of men if if will survive but.
It's in the Communist -- -- worry about but that's internal it makes overall markets.
Depressed -- -- -- attractive.
Don't -- to hear Eli because the auto sector and insurance explain a little bit more about -- Well insurance.
-- kind of backwards is is up our our kind of chicken way of playing in finance.
Were not very comfortable particularly with the Euro banks but we think the insurance companies are.
Rotary and much better shape.
They came off catastrophic losses last year up.
So there -- PE ratios are a little higher than they appear that.
Are not as of the high as they appear rather.
You look at this year next year's -- investments they're fairly reasonable and they.
Holly Johnson Munich Korea that we mentioned garden however -- and a half percent yield roughly while you wait so we think that's an attractive package.
The autos are basically out a bet on worldwide die upturn in consumer demand.
It's not happening fast them is just like in this country.
Where autos are selling better -- economy doesn't look that great.
We think that the economy here and abroad is slowly building up some momentum.
We need to remember that invest it.
Stock investing is or in essence investing in the leading indicator.
-- markets lead lead the economy and by the time if we wait for the economy need to say it's all clear I won't miss most of the price action some.
-- we think this is the time to be shopping.
That's good -- James I noticed on the breakdown of the allocation around the wolves the Asian.
Investments make up about 21% or thereabouts of -- portfolio.
Do you expect to beef that up a little bit as we go go down the line.
We'll go down the road a little -- -- Yes in fact we raised Japan a little bit up it'll be interesting to see -- and they're going the opposite direction from Europe.
Europe is practicing austerity and now.
Prime minister rob bay wants to in -- practice.
Stimulus and now.
-- monetary and policy -- from fiscal policy so will be interesting to see how that works out looked up.
We think that you know pushing down the yen will be part of it and that.
That's been a big drag on their export industries has been their -- currencies gotten now.
This has stayed high for about three years now on -- so the -- -- how that shakes out -- dollar.
-- year high against the yen today we are already at a time James Moffett says scalps investment chief international equities strategist.
Likes Europe James thank you so much for joining us.
Pleasure good to be here are.
