U.S. companies have recently gone on a “buying spree” for emerging market assets, but the money is about to flow in the opposite direction, with the BRICs using their cash reserves to buy up American firms, said Tim Seymour, founder of Seygem Asset Management.
“The money will come from cash-rich multinationals, where the companies are looking to make strategic acquisitions in the U.S.,” Seymour told CNBC.
“They want to be here and they’re not just making deals to say they’ve got an American brand behind them—there’s a strategic element to this.”
Seymour said the best way for investors to profit is through commoditiesand naturalresources.
“Countries like China and even India…will be buying energy assets in North America,” said Seymour, who is also a regular on CNBC's "Fast Money" shows. “Watch the coal sector in the U.S., where there will be more consolidations to come and these assets are not overly priced."
"If you look at gas in North America, they still look relatively cheap to crudeand other oil products around the world.”
Scorecard—What He Said:
- Seymour's Previous Appearance on CNBC (Dec. 15, 2010)
More Market Analysis & Opinion:
CNBC Data Pages:
Tuesday's Top Dow Laggards (as of this writing):
No immediate information was available for Seymour or his firm.