David Herro on Which European Stocks Will Shine
Herro sees political and economic stability improving worldwide creating a backdrop of better fundamentals for European companies.
Herro said investors should be looking at three European sectors in particular; financials (Credit Suisse, Intesa Sanpaulo, and Lloyds Banking Group), luxury (Daimler, BMW, and Richemont), and staples (Dannone and Diageo).
When asked where the auto cycle was in Europe, Herro replied the sector was at the bottom. Herro prefers the luxury car makers, which are increasing market share in the emerging markets and even the developed west.
A year ago, Herro shared his stock selections which were priced attractively due to European and Japanese macro fears [link].