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Sometimes They Do Ring a Bell at the Bottom…

July 15, 2012 | About:
When you get to 40-year extreme valuation levels it’s usually a good time to be positioning for a reversion to the mean. All the obvious bad news would appear to be in the prices.

european-to-us-total-equity-market-valua

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.

euro-us-barron-cover-story-july-16-2012.[img]file:///C:/Users/Paul/AppData/Local/Temp/msohtmlclip1/01/clip_image003.jpg[/img]

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

About the author:

Dr. Paul Price
http://www.RealMoneyPro.com
http://www.MarketShadows.com
http://www.TalkMarkets.com

Visit Dr. Paul Price's Website


Rating: 3.1/5 (16 votes)

Comments

superguru
Superguru - 1 year ago
Dr. Price,

I see that you have 3 European stocks - MT, RDS.a and TOT

Anything else European you are looking at?

Please leave your comment:


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