The US and China are two particularly compelling countries for investment right now, said Edouard Carmignac, founder of the fund management firm, Carmignac Gestion. Speaking at the sixth annual Morningstar Investment Conference in London, Carmignac outlined his views about the American and Chinese markets.
US:
Carmignac says he is feeling good about the direction of the US economy, particularly because he sees that the US housing market is beginning to turn a corner. The American housing market is extremely depressed compared to its pre-financial crisis days, and it finally seems that conditions will begin to improve from here, he says. Furthermore, Carmignac says he’s excited about the success of the shale gas industry in the US. These two factors are giving him renewed hope for the US, he says.
China:
After recently visiting mainland China with his team, Carmignac says he is excited about investment opportunities in the country. He is particularly excited about investing in companies that are serving and profiting off of Chinese consumers. Furthermore, he is less interested in opportunities emanating from Beijing and Shanghai, and more interested in other lesser-known, high-growth cities.
Carmignac says his firm is pursuing both direct and indirect investment exposure to the country. The firm is buying directly into local Chinese companies and also buying shares in well-known Western companies that are serving Chinese consumers. In particular, Carmignac likes LVMH (MC), a luxury firm that is expanding its presence in China.
