Investing Abroad? Experts Offer Their Advice
To deal with the uncertainty, Huntington has been “cautious, playing it defensively,” he said. “We have been buying stocks like Hyundai Motor , which you would consider to be exposed to the economy. But, it’s actually a market share gain play versus a lot of Japanese manufacturers.”
Two more of his favorites: LG Household , because of its consistent earnings and growth potential; and Korea Reinsurance, because Huntington considers it undervalued.
Yet not all foreign investment must be far afield. Take Canadian energy companies, for instance.
“If you look at how the oil patch has fared as a part of the economy in Canada, it’s actually fared quite well,” said Ari Levy of TD Asset Management. “Some of the stocks have been hit on operational issues, but we think they’re now poised to move up and they’re trading at very attractive valuations.”
Among his favorites: SunCor , based in Calgary. “We think it’s a very well-managed company….Companies generally grow for growth sake, and this is an exception. At this point, they’re going to grow only if it’s profitable.”
Another favorite is Canadian Natural Resources , also in Calgary, because its portfolio is diversified in terms of assets and geography. The company has operations in western Canada plus Africa and the North Sea.
Finally, Talisman , also Calgary-based, is well-positioned in Asia — particularly in Vietnam, Malaysia, and Indonesia.