I had the opportunity to meet with two of Capital Group Investors' European analysts. Capital World Investors is the research arm of American Funds - the largest mutual fund company in the country. Some soundbites from the discussions:
Despite the volatile markets and recessionary economies, the lack of major corporate bankruptcies suggests the strength of the companies is pretty good.
Pharmaceuticals and energy valuations are low - there is plenty of room for growth here. Despite the hype associated with alternative energies, in Europe they have found that solar and wind energy is neither cheap nor efficient.
Consumer demand in emerging markets is increasing. Multinational consumer product companies stand to profit the most.
Headlines about the woes of Greece and Ireland notwithstanding, in the grand scheme of the total European economic order, those two countries are small and not particularly influential.
When looking at overseas investments look at the companies not the countries. Most multi-national companies have footprints well beyond their hometown.
The Obama Administration is slowly allowing more international capital for U.S. investment. That additional capital investment will bode well for the companies involved and the overall market.
Focus on long term value. May have to tolerate some short term pain for long term gain. There is "money to be made".
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