James Paulsen is Bullish on Emerging Markets
The Nightly Business Report interviewed a bullish James Paulsen, chief investment strategist of Wells Capital Management, on Friday. Citing improving consumer confidence, an economy where more parts are beginning to work along with a growing labor force and falling debt burdens, Paulsen said economic progress is slow, but sustainable, which will lead to higher asset prices.
Another catalyst to move the market higher could be successful Chinese stimulus efforts leading to growth in emerging markets, Paulsen said. He recommended a variety of emerging markets, especially India and China. Investors should overweight emerging markets and invest broadly in related ETFs, Paulsen added.
Paulsen said he liked U. S. manufacturing, industrial and basic material stocks heading into 2013. He mentioned their attractive prices given the weakness they’ve experienced over the past year. These industries should benefit from emerging market demand, he added.
Back in May, Paulsen provided a similar bullish assessment and recommended specific ETFs (link).