Outsourcing Investments: Traders Look Overseas
With the dollar dropping against the pound, euro and, until recently, the yen, it’s no secret investors are looking overseas. Foreign markets are showing bigger discounts and more upside. David Winters of Wintergreen Advisors is one such investor, and he says the majority of his assets are outside the U.S. these days. “It’s harder to find really good deals here,” he says.
Appearing on “Closing Bell” with Maria Bartiromo, Winters says he’s “very enthusiastic” about the opportunities in Asia, calling the wealth creation there “mind-boggling.” Companies like Swire Pacific are undervalued and well run, he says.
As a way to counterbalance possible growth slowdowns in China, Winters has ownership in three European companies – Imperial Tobacco and Anglo American of the U.K. and soap-detergent maker Henkel in Germany. He thinks these stocks will persevere through strong and weak cycles.
Wintergreen Advisors is focused on direct investments in these markets, but buying into funds with holdings overseas might be a good strategy for investors to get a piece of the action.
Analyst disclosure: David Winters either owns directly or through mutual funds the following stocks: AAUK, WY, KOF, HEN and SWRAY.