Thought leaders at OppenheimerFunds have been going over the recent proposals and rumors in Europe.The market is so volatile because of fear of lock up of the financial system.There is a multifaceted game of chicken that the Europeans are playing with one another,resulting in someone driving off a cliff.There does need to be some structural reform.Can it be put in place before the European Central Bank does what it should do?asks Jerry Webman,PhD,CFA,Chief Economist and Senior Investment Officer at OppenheimerFunds.
At least the Europeans have been willing to shake things up a little.Here in America we have an uneasy equilibrium.Among portfolio managers,there's a feeling we're as good as our last idea.Nobody wants to make a bad bet.You get punished for it,Dr.Webman observed.
It's a step in the right direction,adds his colleague Alessio di Longis,CFA,Vice President at OppenheimerFunds,but we are treating the symptoms,not the disease.It does absolutely not mean that we should start emphasizing stocks.Today signals the ECB tendency to ease,but we are not treating the underlying problems.
We have treated the Euro problem from an individual country approach.We need a structural approach,Mr.di Longis agreed.
Oppenheimer Holdings(OPY)
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