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Invest In Europe Funds ? You Might Want To Stay Away For Now
I'm a little confused...as usual. The title of the article (deals with Europe) and your recommendation seems to relate to the sale of EEM fund (Emerging Markets).
I actually see less debt issues in Emerging Markets and maybe even in Eastern Europe and Russia. Not that they won't feel the impact of Europe's issues.
As for European equities, I think global European based companies such as Nestle and others will show signs of continued growth.
VGK, Vanguard MSCI Europe has this for its top 25 holdings: http://portfolios.morningstar.com/fund/holdings?t=VGK®ion=USA This fund seem to be range bound between $40-$50 since '09. I try to trade it between these two levels and collect the dividend (4%) when I hold it.
Except for the financials, I like this list of global companies that pay a nice dividend.
The usual ""You can talk to many economists about the effect of austerity programs on gross domestic product and get many answers" routine. I very much doubt that any of the FA/MFO regulars are going to be too surprised by anything that happens in Europe- all of the factors and ingredients for trouble have been painfully apparent for quite a while now.
You either decide to close your eyes and ride it out or get the hell out while the getting is good. The troubles in Europe are also going to affect the emerging countries to a certain extent, as both raw material and product demand is of course going to fall a bit, if it hasn't already. On the other hand, China may very well pick up some the slack by stockpiling commodities at a good price. If things get bad enough, they are also bound to eventually impact the US as well- exporters like CAT, for instance, although the food-stock exports will probably be relatively safe.
But I see nothing new here- this situation has been building and limping along for at least a year already. Why all the excitement at this point?
Comments
I actually see less debt issues in Emerging Markets and maybe even in Eastern Europe and Russia. Not that they won't feel the impact of Europe's issues.
As for European equities, I think global European based companies such as Nestle and others will show signs of continued growth.
VGK, Vanguard MSCI Europe has this for its top 25 holdings:
http://portfolios.morningstar.com/fund/holdings?t=VGK®ion=USA
This fund seem to be range bound between $40-$50 since '09. I try to trade it between these two levels and collect the dividend (4%) when I hold it.
Except for the financials, I like this list of global companies that pay a nice dividend.
You either decide to close your eyes and ride it out or get the hell out while the getting is good. The troubles in Europe are also going to affect the emerging countries to a certain extent, as both raw material and product demand is of course going to fall a bit, if it hasn't already. On the other hand, China may very well pick up some the slack by stockpiling commodities at a good price. If things get bad enough, they are also bound to eventually impact the US as well- exporters like CAT, for instance, although the food-stock exports will probably be relatively safe.
But I see nothing new here- this situation has been building and limping along for at least a year already. Why all the excitement at this point?
7: 00 pm PST: But a few hours later...
⇒ Maybe Ted's on to something after all...