Buy European Equity Weakness: Pelosky

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Sept. 9 (Bloomberg) -- J2Z Advisory President and Founder Jay Pelosky discusses his emerging markets investment ideas with Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

He says china is in the early stage of a multiyear economic slowdown.

Welcome back to "street smart." you have a china play, but it involves another country, chile.

I want to stick with chi.

-- china is up off of its low.

It is tied to copper.

It accounts for a large amount of the world's copper demand.

You sound like you are long, c hile.

How are you tracking this?

Ech is the symbol.

It is trading right around $50. below was made -- the low was mid-$45. this is still below the 52-week high.

If you like china -- your question at the end was the key.

Should you take money out of the u.s. and by emerging markets?

I agree with take money -- taking money out of the u.s., but i think it should go into the other developed -- the other developed markets that are not the u.s. developed markets, ex u.s.. we are in stages of transition away from the u.s.. the new leadership, the other developed markets, japan, united kingdom, europe.

I'm looking more at buying europe than anything else.

This is a page right out of your playbook.

A lot of folks are doing that.

Equity funds are going into europe.

Some of the big players are also still bearish on emerging markets, like blackrock and other big investors.

Can you classify emerging markets as a group?

Don't you have to distinguish between the weaker links and a stronger countries?

There is increasingly some selectivity.

Current account deficit countries that need to import capitals to balance their books have been hammered.

India, turkey, brazil.

Then you have the other emerging market countries that are maybe a little bit more solid.

Mexico, for example, is the one emerging market i really like a lot.

If you're looking for an opportunity within the emerging markets, that's where you want to go.

More so than chile.

Mexico is increasingly tied to the u.s., but it also has a lot of its own dynamics.

It is opening up its energy sector and making tax reform.

It has been really hammered because it was one of the most widely held emerging market equity stories.

It is down by 20% off of its high.

The real opportunity is in the european markets.

People are starting to talk about it now.

I think it is still early days.

Most interesting within europe are the european banks.

You and i have talked about it in past shows.

They have been the leadership sector.

I think you will see the seat -- the same thing happening in europe, the profit-taking at the banks.

This text has been automatically generated. It may not be 100% accurate.


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