WisdomTree Europe Getting Some Nods

We're heading towards an earnings trough,said David Kudla,Founder and Chief Investment Officer of MainStay Capital Management.The market will suffer from:
1.A Fed rate hike coming;
2.The strong dollar;
3.43 months without a 10% correction.
I still think we're in a long-term secular bull market.We're still positive on the US.We just think with the opportunities overseas and alternatives,you should look for negatively correlated investments because of the volatility we're going to see in the US.
We like the WisdomTree Hedged Europe Equity Fund.It's focused on mega caps that will benefit from a weak euro.Europe is embarking on QE,which inflates market value;while the US is embarking on tightening monetary policy.*
CNBC's floor reporter Bob Pisani also noted how popular this WisdomTree etf has been lately as it is hedged against a declining euro.*
Speaking at a press conference today,Fed chair Janet Yellen said a rate increase could be warranted at any FOMC meeting after April.We can't rule out June.*
WisdomTree Hedged Europe Equity Fund (HEDJ)

What Investors Need Today

What you need is stable earners with big cash flow,advised Ashok Shah,investment director at London&Capital.Later,as QE approaches,you can take another look.*
I think the Russia/Ukraine situation is going to drag on for months to come.Until there is a definite economic impact,I think the market will look right through it.*
The bond market is saying the economic outlook,especially in Europe,is poor.We're already seeing Italy going back into recession in the second quarter.The underlying problem is deflationary pressures.That's going to restrain any recovery in the economic growth rate.I think we have to be used to very high levels of unemployment for long periods of time,until there is proper restructuring.I think the brain drain from the UK and Europe is going to continue for a long period of time,Mr.Shah predicted.*
The way we're going to quantify Russia and Iraq is,if you cut drilling in Iraq and Russia,you're going to cut drilling numbers for the oil service industry,CNBC host Jim Cramer noted.*
China is just not liking us at all with its antitrust policy.Look at Applied Materials.It's down 10-20% because of China.China's cracked down on Cisco.China's playing with us,dumping their steel.Who's spending in China? Amazon.Look out,PRC,Amazon's coming,Cramer warned.*
Amazon(AMZN)

Trust Company Distrusts the Market

This is a financially engineered market,said Michael Crofton,President and CEO of The Philadelphia Trust Company,engineered by central banks.Bonds and commodities are telling us that stocks are too high,and there could be a crash.
The pullback will come from a macro-event that will surprise everyone.The Federal Reserve won't be able to do much more to help.Those high points of similar markets in the past coincided with the peak of financial engineering.
We rotated out of consumer staples in March and into underperforming energy and technology.The rise of staples had been unsustainable.You just keep rotating,and when the music stops,you'd better hope you're sitting down.
The Philadelphia Trust is an independent private bank serving affluent investors and institutions.The company says it brings old-fashioned values such as attention and discretion into the post-modern world.It offers a full range of services,from custody and trading to income distribution,CDs and scheduled client reviews.
In equity investing,the Trust strictly adheres to the growth at a reasonable price discipline.
On Wednesday,the Federal Reserve said it would continue its quantitative easing policy of bond-buying to keep interest rates low,in effect driving investors more into equities.

Newsletter Founder:Slowly Working It Out-the global economic slowdown

Spain will take a bailout by year end,predicts Paul Krake,founder of the "View from the Peak" newsletter.The world is so dominated by QE and expansion of the balance sheet,that's all that matters.
This is about kicking the can down the road.It's about working through the process.This could take 5+ years.
I've been advising clients a Spanish bailout and a Greek bailout will occur around the same time.Portugal will need more money,but it's incremental compared to Greece.
Asia will continue to be affected by falling exports.Global growth ex-US will be very sluggish next year,Mr.Krake advised.
QE,or quantitative easing,is the buying of assets by central banks to support markets and the economy.
"View from the Peak" is a weekly macro piece on the economic,valuation and policy factors that drive asset classes and regions.They work with asset management firms, sovereign governments and high net worth families.
Paul Krake has a Bachelor's degree in economics from Monash University in South Africa.

Analysing The Current Financial Problem

Komal Sri-Kumar,Chief Global Strategist at TCW,thinks the fundamental problem is you have an excess of debt in the world.The Federal Reserve left open the possibility of QE3,or more quantitative easing.It's something to be worried about this late in a recovery.
If we don't do any structural reforms,I can't see any improvement.We need to have free trade agreements;a more flexible labor market.I think we are in a recession now and into Q4.
We are looking into defensive areas.We like energy;information technology.Stay away from European equities and fixed income.The corporations have something like two trillion of cash.The money is kept mostly outside the U.S.,away from higher taxes.
I considered QE2 alchemy.You need incentives,getting workers to work and increase productivity.You cannot get anything else out of monetary policy.Many companies are firing domestic workers as they hire them abroad,because it is more efficient,Mr.Sri-Kumar noted.
TCW,the Trust Company of the West,offers institutional and individual investors a wide array of U.S. Equity,U.S. Fixed Income,Alternative and International strategies.It is committed to fundamental research and superior customer service.Based in Los Angeles,TCW was founded in 1971.

Haunted By The Nikkei

The specter of Japan's most popular stock average,the Nikkei,hovers over the minds of U.S. officials and investors alike.The Nikkei reached its peak of around 40,000 in 1988.For 22 years,it has failed to even get close to that level again.It's only at about 9500 now.Is that to be the fate of Western markets as well following the financial crisis?
James Bullard,President of the Federal Reserve Bank of St.Louis,says deflation is not the main economic scenario for the U.S.All the same,core inflation has drifted below 1%.We're on the low side.The Japanese situation has been very difficult for them to get out of.Mr.Bullard calls for a plan to have significant easing.If the economy continues to recover,we can all forget about it,but a big shock to the economy could cause the Japanese situation here.Japan is a big,industrialized country;they're like us.The Fed's interest rate targeting can create this outcome.Low inflation plus low rates can cause deflation.
The academic community takes this risk seriously.Mr.Bullard is still an inflation hawk,but that's not where we are now.If we promise to stay at 0% rates for 10 years,it's gonna be Japan all over again.At some point,the strategy has to shift.In that situation,deflation,ordinary stabilization methods are shut down.You're in this environment where inflation can be too low,and you have to deal with that.Quantitative easing can work.It's important to do contingency planning for all outcomes,the Federal Reserve Bank President James Bullard believes.