In terms of the euro, Siegel thinks one remedy to the situation could be developing two levels of the euro, where one is valued to the other. One type, the “core euro” would be used among all the core countries that are fiscally in good shape. The second type, the “old euro” would be used among countries like Greece.
Investors who concur with Siegel can look into the WisdomTree International Hedged Equity Fund (NYSEArca: HEDJ), which is bullish on certain European stocks but hedged against the euro.
Sumin Kim contributed to this article.