Sunday, March 7, 2010
A Farewell to Europe? Not So Fast
From the analysis of this article, it is still a worthy investment to put one’s money in Europe’s stock market. First, although recently the stock market of Europe is in a bear state caused by the crisis of Greece, yet Europe’s stock market is a big chunk of the world that it represents more than a quarter of global stock market value. Therefore, it would be a big mistake to jettison Europe market. Furthermore, investing in Europe can help investors mix up the way they earn their money; after all, European stocks are paying more than 3 percent interest---among the highest yields in the world. Additionally, according to Ben Inker, director of asset allocation at GMO, a money management firm in Boston, says that “ you need Europe is that the valuation cycles are different.” That is, the stocks of European and equities of America are considered cheap at different times.
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i also agree i think that right now there are very few "safe" investments but developing countries are desperate for foreign investment and that is where i think people should invest until we start to see a more stable market and economy to invest in
ReplyDeleteBesides, exchange rate in Europe is quite high. I mean with the same amount of money, we get less euro to invest. I also agree that investing in developing countries now is more promising; the exchange rate is low, more potential for returns.
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