You're watching...
Scout Investments Chief International Strategist James Moffett on strategies for investing.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
For all you people who are wringing your hands and worried about Europe guess what European stocks don't care they continue to climb the wall of worry beads.
Trading at their best level since June of 2008.
Can this rally last would have to dual rallies here here in the US and that of course in Europe especially since the eurozone economy is -- along their sovereign debt crisis still an issue.
James Moffett scout investments chief international equity strategist.
Joining us now from Kansas City, Missouri to share some fundamentals.
On the best plays in Europe right now you're you're gutsy -- -- I -- you have to because that's the the mandate of your fund but.
How you manage to continue to do well in light of pretty negative headlines depending on which country we're talking about in Europe.
But most of most of the things we -- our our multi nationals so they're not.
There are not exposed to the risk in just one country.
That -- and it's also stick to the quality companies the ones that.
Seem to be.
We think are well managed to have good balance sheets it's amazing how.
Bad a -- a good balance sheet is in in tough times and these companies there aren't a good position now most -- gaining ground on the competition.
That's.
Being hurt in this environment some.
World -- optimistic.
OK do you have some names force but before we get to those I was like to ask people how do you pick up your what's your strategy when it comes to picking stocks in regions.
That might be a little touch and go.
Well some of its -- down top down view of saying when do you wanna be there and frankly right now we think that Europe is is.
In the position where the US was a year to go where things look like they were never gonna get any better.
But.
We think they will get back.
You -- quite serious earnings seem to like you look at at that the leadership for the quality of the company and what they make.
What we look at the quality we look at the leadership.
We look at.
Hopefully -- in the ones we think there are gonna have improving earnings.
You know this is not a simple 11 step answer but.
Basically is trying to find the good companies is is the strategy we have been in many ways it's good companies and in some of the troubled countries that.
You know are exposed to more than just their home countries so that they're they're in good shape.
Well that's a perfect segue to your first pick which is in one of the troubled countries and that's Italy looks -- -- -- which is the eyewear giant why do you like this company.
Well for two reasons one they do a great job there's a dominant player in the -- eyeglass frames.
Not the -- is that the frames and there are there the worldwide leader there also.
Do about 40% of their business in this country with sunglass hut LensCrafters.
-- You know there're -- a dominant player and they're not expose just to Italy.
For you.
Their who have said the rock and I even though there Italian.
Lots of beautiful five your chart as well.
In is it in debt -- -- checks the parent of czar which is everywhere -- we get a map so that you could see where sorrow which is a Spanish.
Very hot retailer has done so well here in the US it's very hot because the price points -- goodness styles -- it.
Well there's an interesting article New York Times a couple months ago -- -- on how there.
-- their focus on urban environments and there we don't have one here in Kansas City and there.
They're not many in mid -- because they say they've used the midwest in this one large overgrown mall and that is on there.
That isn't there -- kind of environment that her you get a month major shopping streets and and this -- there's more difference even between.
What part of New York -- and whether you're on park avenue or over on Brooklyn though.
It makes a difference and how they handle the retailer gets what they're really good at is understanding their market.
Having the right merchandise there -- David they source most of it in North Africa and Eastern Europe so that.
It's much more available.
Their competitors are still putting this thing on the vote in China when they're shipping it to -- out -- the stores there.
Fast they figured it out czar and the company is and detects thank you very much we've got it right there on the screen James it's great to see -- thank you for being here.
Pleasure good to be to see you any -- James Moffett discovered investment chief international equity strategist the fund it's it's -- return -- about 7% up 14% over the past year closing bell ringing.
