Quote:
Originally Posted by CamryV6Sport
Aren't european stocks cheap now?
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cheap is a relative term
i wouldn't advise even considering owning anything more than mutual funds if you invest based on 'prices being cheap'
having said that, there are opportunities - i, for example, was looking at a korean stock (KEP), i think it has long term potential, as fits nicely in my diversified portfolio as an energy/future nuclear enegy stock
well, after the little scuffle the other day, korean stocks dropped 5% - i got a nice discount on this stock, its back up to almost where it was a week ago... there may be more fluctuations, but i see it as a long term buy that i have already gained nicely on for this year
so, yes, if you have some european stocks in mind, might this be a good time to buy? maybe, i'm looking at TEF, i think the spanish markets will take a bit of a beating in the coming weeks as the next 'bail out' may be coming spain & portugals way, or at least some stress on their markets, so i'm keeping an eye on it - TEF is too big to ever fail, their accross >100 spanish speaking countries and are a good dividend paying stock with good long term growht potential (and are a nice telecoms company for your diversified portfolio), so if i can gain 5% in a matter of a couple of weeks SOLELY based on emotion relating to bail outs and perceived weakness in the european markets, you bet i will - but just because the european markets are hurting right now doesn't mean you can just enter without a plan
also, europe's not done weakening yet... its going to be a good time to buy euro's soon, for the longer term hold, as hte US $ is getting artificially overvalued as everyone rushes to $$ from euro... things will calm down and they'll go back to the euro, and US $ will hurt again - so there's potential there for a swing, maybe pick up 4 - 6% on the in & out in a matter of months... good return