Europe Still Has Room to Run

Despite fretting over the French election, first-quarter European market data surged and the European Commission’s consumer sentiment survey is near its 2007 peak, according to a recent article in The Wall Street Journal. The question, it says, is “how good can it get?” While Eurozone gross domestic product expanded by only 2% in 2015 and […]

The Relationship Between Stocks and the U.S. Dollar

While the dollar’s relationship with the economy as a whole is relatively “murky,” the relative performance of U.S. and foreign equities against the dollar is more distinct, writes Ritholtz Wealth Management’s Ben Carlson in a recent Bloomberg article. “When you own shares from other countries around the globe, the diversification benefits come mainly from your […]

European Stocks Look Appealing Compared to U.S. Shares

Investors shying away from stretched stock prices in the U.S. are “gravitating toward Europe for cheaper bargains as the trade matures,” according to a recent Bloomberg article. Morgan Stanley equity strategists raised their 2017 earnings-per-share growth forecasts for the MSCI Europe Index to 16% from a previous projection of 12%, the article reports. According to […]

More Upside in International Stocks

The continued grind of the bull market may not be justified, according to an article in this week’s Investment News. In fact, the article, written by Joe Smith, senior market strategist at CLS Investments, argues the positive data points currently baked into the market—a dip in unemployment, improved corporate sales and earnings, additional consumer spending—don’t necessarily […]

Overseas Blue Chip Picks

Currently stretched equity valuations, an imminent presidential election and a probable December rate hike are fueling uncertainty in the markets. Validea CEO John Reese, in a Forbes article appearing yesterday, outlines issues that could support the notion of increasing international stock holdings as part of a balanced investment portfolio. “Europe is facing a number of structural […]

Paulsen Urges Shifting More Towards International Stocks

US investors should start considering a heavier weighting to international stocks, according to James Paulsen of Wells Capital Management. Paulson, who is chief investment strategist at Wells, says that a commodity-price rebound will benefit international stocks more than the domestic names.  “The U.S. economy is more consumer-centric compared to foreign economies,” Paulson wrote in a […]