Wir sollen nach Europa!

Fri, 2017/10/06 - 12:38pm | Your editor
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Deutsche Bank's stock analysts weighed in with an argument for global investing, particularly in Europe, being shared with you, headlined “connect the dots”. It reads:

nvestorsd underallocated to international investment may be missing out on an important growth engine in today's global economy. While the US is home to many of the world's largest and most important companies, the international equity markets account for almost half of the world's market capitalization. By ignoring international stocks, you may be missing out on an important growth engine in today's global economy.

According to the International Monetary Fund, non-US markets made up almost a quarter of the world's gross domestic product (GNP) at the end of 2016, and accoutned for almost half the world's market capitalization.

The global economic recovery is increasingly evident in the developed markets of Europe. Until several months ago, investors worried that the region was politically risky. Now, as the dust of Brexit and the Italian and French elections settles, these concerns appear to be dissipating, allowing focus to shift to improving economic data.

Interest rates are expected to remain low, which is generally supportive of stocks. Meanwhile, consumer and business sentiment are strong, boosted by rising industrial production, credit lending, wages and employment.Europe's high-export economy continues to benefit from revoery in the emerging markets...

This translates to an ennvironment that should support continued strength across the region. Earnings growth appears to have reached an inflection point, reversing a 5-year treand of flat to negative growth. Deutche Asset Management's analysts anticipate double-digit earnings growth in Europe for the first time since 2010. And those numbers are broad-based, not limited to a few business sectors.”

Deutsche then boasts that it is very present in Europe and can closely watch on European companies. Ja.

 

Tactfully, it does not say that US markets are ahead of themselves after a too-long set of new highs by the broader market, the S&P 500 index, and by a small handful of attractive US tech shares.

 

Today, Wall Street was jolted by the weak jobs report, hit by hurricanes. UK PM Theresa May's stumbled as a speaker. European stocks are suffering in tandem, hurt also by political uncertainty in Germany (plus a deadly storm, Xavier, in its Baltic area) and worries about Spain's dealing with Catalonia. Austria has a vote on the 15th and its stocks are down. It is a good time to move into European shares.

 

One US stock to SELL is Verizon which, having connected my office direct line after hours a week ago, today disconnected it instead of repairing our main line corporate number. This is not just incompetence. It is because they own the copper lines which run under the streets in Manhattan, inherited from Nynex and ultimately from AT&T. I suspect they were laid in the sewers by Alexander Graham Bell. By cutting off service they are trying to force me and my neighbors to switch to their phone services from other firms, which is probably illegal. Our super, back from vacation, is taking on the cause. I just sold half my VZ. They now say they will come Oct. 9 when the building is again on lockdown for Columbus Day.

More on telcos below along with news from Europe and also Japan, Israel, Egypt, Australia, Argentina, Chile, Peru, Chile, South Africa, and Hong Kong.

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