****Commentary on European equities (nothing conclusive here)****
The European Sovereign Debt Crisis dominated 2010. The equity markets show an obvious regional disconnect. Equities are showing structural differences that need to be worked out still. Perhaps for those who are bullish on the region or for those who are less risk averse may find hidden value in Spanish or French equities. What may this value be? I would love to hear the bullish arguments for such a thesis... as I currently don't have an answer.
- The Dax, clearly the winner in 2010 of the world indices, benefited from risk aversion and being the "economic powerhouse" in the Eurozone.
- The FTSE managed to maintain its resilience and performed on par with US equities (SPX not shown here).
- The two laggards being France and obviously Spain one of the piigs.
Going into 2011 I am very interested to see if Germany can maintain its safe haven status or will the rest of the Eurozone finally humble the country and drag it down along with its possibly overvalued equities.
Shorting Opportunity in the Dax or buying opportunities in the CAC or IBEX for value guys???
-----
Alexander Lê
Managing Partner
Analyze Capital LLC
analyzecapital@gmail.com
No comments:
Post a Comment