The case for favouring European stocks is based on:
1.their attracive valuation
2.the ECB being ready to pour on aid
3.a weaker euro.
On the other hand,Greece is a big risk and could be a substantial challenge for Europe.Also,
1.US companies have less exposure to Russia and Ukraine.
2.They have cash for dividends.
3.The banking system is strengthening,points out Mohammed El-Erian of Allianz.*
I wouldn't be surprised to see increased volatility for the first six-nine months of the year,says JJ Kinahan of TD Ameritrade.The nice thing is,maybe the greater volatility will help clients realise you don't have to own something forever.I would say one thing:you don't have to buy the bottom.Be very careful of the falling knife.*
John Kilduff,founding partner of Again Capital,notes that,in light of energy market conditions,oil company property and the oil beneath it is going to have to be revalued,cutting the borrowing base.The commodities are so out of favour.David Tice,CFA,founder of the Federated Prudent Bear Fund,adds that Iraq and Russia production came back,along with fracking coming on line.We love the gold mining stocks.Their biggest cost is energy;therefore they are levitating.The price of gold has almost doubled since June,and you can't print money as your way to prosperity.*
Market Vectors Gold Miners ETF(GDX),Federated Prudent Bear Fund(A)(BEARX)
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