Henry McVey,Chief Investment Strategist at Morgan Stanley,thinks Germany's in pretty good shape.The UK may be the next problem.There's tension between high leverage and sustaining growth in Europe.What's really a risk-free asset?The U.S. is gonna be somewhat of a safe haven.Treasuries haven't sold off,and the dollar has rallied.
Mr.McVey still thinks most of the emerging market currencies are a good bet.They've been owning some high yield growth stocks outside the U.S. such as Nestle.A lot of the most levered companies are pretty expensive right now.
I don't think the sovereign debt issue is going away,Mr.McVey said.It's a multi-year issue.It's tough medicine to bring down your leverage.It's the first time in the capital markets that Asian inflation exceeds that of the developed nations.There's more stress to come for the pound and the euro,Mr.McVey predicted.
No comments:
Post a Comment