Free 7-day Trial
All Articles and Columns »

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.



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.

[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:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide