European stock ETFs rallied Monday after their recent beating. [European Stock ETFs Pressured by Banks]
“The market’s big swings are still going strong. Last week the Dow Jones industrial average ended in the negative for the fourth week in a row, as jilted investors continued to pull billions of dollars out of stocks to wait out the storm,” writes Roya Wolverson at The Curious Capitalist. “The volatile dips are likely to continue, since major threats to the market still loom, which many on Wall Street haven’t priced in: a Lehman-like European bank run, the dissolution of the euro, a sharp slowdown in emerging markets, a double-dip recession at home.”
Investors have a long list of worries about the market but some see attractive valuations in stocks after the recent sell-off.
“For investors the unpleasantness of current volatility and fears of recession need to be balanced against current market valuations. Indeed unusually low price-to-earnings ratios on stocks and exceptionally low yields on Treasuries only seem to make sense if a very nasty recession materializes,” wrote JP Morgan’s Kelly. “Given this pricing, a balanced approach to investing still seems appropriate in a financial environment where neither market prices nor investor emotions appear to be anywhere close to being balanced.”
ETFS Physical Swiss Gold Shares
