PELL Futures says Buy Stocks Focused on China Consumer

Online, October 20, 2009 (Newswire.com) - It always depends on the relative price because you have this huge rally in Chinese and other emerging markets in Asia`s stocks this year," he said in an interview with a Hong Kong Financial News Channel. "Find a basket of the 50 best brand-name companies in the U.S. and Europe, obvious names, and think about the ones that are really focusing on developing in Asia, and off you go."
Lee-Park said valuations for Chinese companies have matched and sometimes exceeded their American and European counterparts. The Shanghai Composite Index has gained 52 percent this year as Premier Wen Jiabao's 4 trillion Yuan ($586 billion) stimulus package drove the world's third-largest economy out of the steepest slump in more than a decade.
The maker of Mercedes-Benz cars and trucks, as a global consumer company, is benefiting from increasing sales to China. Demand for Mercedes-Benz is "strong" in China, he pointed out, to emphasize the trend.
China's economy will grow 9.5 percent next year after rising 8.3 percent in 2009, according to the median estimate of 21 economists surveyed by Bloomberg in August. PELL Futures predicts China's economy will grow 11.2 percent in 2010.
Lee-Park said that Brazil, India and China, domestic demand may spur a jump in U.S. exports.
"I think it's quite feasible that you'll get a positive surprise to U.S. exports from the rest of the world, particularly Asia," he said.