Eaton Vance's Rees-Moog Sees Tremendous Values in Emerging Markets

9. If you had to pick two or three companies that you would hold up as solid longer-term investments, what would they be?

This is the curse. Whenever one recommends particular stocks, they inevitably perform terribly going forward. But I'll stick my neck out and hope for the best.

On value grounds, I would buy Telecom Indonesia. The company has a P/E of under 5 and a dividend yield of over 6%.

I'd buy on the grounds of huge growth Kimberly Clark de Mexico(KCDMF), because the use of paper products in Mexico is very low. It has an 11.5 P/E and again a dividend yield of about 6%.

I'd buy gold stocks because if everything else goes wrong, you'd still make money. I'll pick Harmony Gold because it has a fantastic management.

Lastly, I'd put a little money in Sindoricoh, because of the reasons I explained. It may not be perfect timing at the moment.

Wow, you offered four.

Now, if all four stocks encounter disasters, you'll know who to blame.

10. One last question: You invest in some hot-spot areas, such as Indonesia. Are you concerned at all about the risk of terrorism on your holdings? Is there any way you can possibly factor this into your investing?

I live immediately behind the American embassy in London, so I'm surrounded by armed police, barricades, you name it. So it's certainly on my mind. However, I think you can't invest or live on the basis that you or your stock is about to get blown up. You're not.

The odds of any stock you're investing in having damage are so slim. And when these things happen, which they inevitably will, these stocks fall off so dramatically that it becomes a great time to buy.

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