Templeton Global Equity Group’s CIO About ‘Overweight’ European and ‘Underweight’ Emerging Markets Stocks

In a recent interview with Bloomberg Television, Norman Boersma, the Chief Investment Office or Templeton Global Equity Group, which has $130 billion in assets under management,  provided his insights about developed and emerging market stocks.

Mr. Boersma considers that even though the Fed and the central bank of Japan are easing their policies, still the quantitative easing means that just less money being pumped into the system, as opposed to a reverse action and this move is still supportive for equities.

Currently Templeton has an “Underweight” rating for Emerging Markets stocks and “Overweight” for European stocks for the five-year horizon. Mr. Boersma stated that the rating for European stocks was set a couple of years back, when the European Central Bank President, Mario Draghi, said that they are going to support the peripheral countries.

“Stocks were unbelievably cheap back then. Nobody else really wanted to look at European stocks and if you had a five year view you would look basically out far enough and you would see the growth coming. [...] Today a little less so, but still many good opportunities there.” Mr. Boersma pointed out.

However, this is not the case with the Emerging Markets, where people are just starting to really push the equities down, they are started to get interested, according to Mr. Boersma. In this way, Templeton has purchased some stocks in China and Russia, but there aren’t as many opportunities as have been a couple of years ago in Europe. However, Templeton is focused more on individual companies rather than on entire markets while picking their investments.

“We’ve been buying a little bit in China, a little bit in Russia, but we are certainly not finding the same magnitude of opportunities that we found a couple of years ago in Europe. [...] In Russia there are really a couple of cash flow stories that are more in the material side of things and they benefit from a cheaper, weaker Rubble. [...] In China there is a wide gambit of different types of companies,” Mr. Boersman said.

Watch the full interview below:

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!