A while back we suggested putting some cash to work in Europe. There's some value there despite all the concern about deflation or the absence of inflation.
We briefly mentioned it in "Money Made Here." Now some hedge fund managers also known as activists, according to today's Financial Times, are starting to snoop around for opportunities. European market valuations have trailed those in the U.S. and, per the Times, some companies there have been hit hard "by the continent's debt crisis, are more open to radical shake ups of their businesses than ever before."
This is not new and if history is any indication not the easiest road to activate.The important point for regular investors is the valuation part. One can play this if there is a recovery, and there will be one at some point, by looking for individual solid companies, sector funds and specific country funds.
In another report, also in today's Times, "Institutional Investors' top 10 asset classes" for the next six to 12 months, European Union equities are far down the list at seven, even behind emerging market and high yield debt. At the top spot are Emerging market equities, followed by US and Global equities.
We like the underdog flavor of that list given how often Wall Street pundits turn out wrong.
t. man hatter
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