There’s been a lot of focus on the international markets after the recent decline of the U.S. dollar. And even with the dollar's fall--a diversified portfolio should probably include some stocks from overseas. At least two analysts think so. They joined Sue Herera on “Power Lunch” to give us their picks.
Reiner Triltsch is head of international investing at U.S. Trust. He’s bullish on Japan, Greater China (China, Hong Kong, Taiwan) and the Eurozone (barring Italy and a few others). Reiner believes in the Japanese turnaround. He says there was a bit of a rest after the strong Q4 rally in 2005, but that Asian economy is in store for a strong 2007.
Triltsch likes the Eurozone because of the past few strong quarters – which bested the U.S. He says growth in Central and Eastern Europe and overall earnings growth for the continent as a whole translate into good profits.
Lawrence Goodman, head of emerging markets strategy at Bank of America, says that demand to invest in Asia is going to continue to grow – especially in Indonesia, India and China. Indonesia has enjoyed some high yields, and its central bank has been able to dampen rising inflation and keep rates down.
Goodman sees potential in India as well, as that country transitions from services to a more manufacturing based economy. Also, India is growing at about 9% with little inflationary pressure.