Monday, November 3, 2014

Europe stock weakness due to Germany

The Germans have been terribly reticent and absolutely wrong in their reticence about not expanding reserves from the ECB.... and they have done I think untold amounts of damage to the economy and that is why it has lagged. 

Also there is terribly difficult reforms that have to be accomplished. But if all of those things do happen and you get Quantitative Easing, then I think European stocks will do reasonably well...Probably still will be better to be invested in the United States. 

But if you must be invested in Europe under Quantitative Easing go ahead and do it. At the same time make sure you are short of the Euro, I think that's the real trade to be long of the stock market and short of the euro because if they do Quantitative Easing that will be detrimental to the Euro and that will actually be very good for the European economy.



VIA CNBC interview