Go with good quality, financially strong companies that are likely to survive and prosper even if things go badly on a macro-economic level in the near term.
Many of the stocks exhibiting these traits are now offered with low P/Es and relatively high yields. The main risk? Relative devaluation of the Euro against the $US. Euro/Dollar parity was predicted on the cover of Barrons this week which may be a classic contrary indicator.
Purchase candidates include both pure plays on Europe plus shares of international giants with significant European exposure.
Position: Long KELYA, MAN, MT, RDS.a, TOT, XOM, COP, CMI, WAG, ANF, SEE, SPLS, ITW, PEP, IBKR
Dr. Paul Price July 15, 2012
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