The Eurozone has moved out of its Greece debt crisis induced recession as officials did “whatever it takes” to save the euro currency.
“Removing the uncertainty that drove European stocks to bargain prices should continue the price-earnings ratio expansion that is fueling their rally,” CJ Brott, chairman of Capital Ideas, said in the article.
Brott argues that small-cap companies are better positioned for a recovery in the domestic market. The WisdomTree Europe SmallCap Dividend ETF (NYSEArca: DFE) is up 26.9% year-to-date. [International Dividend ETFs and Rising Interest Rates]
Once the Fed does decide to taper its stimulus, investors should find a hedge for the short-term volatile market conditions.
Bob Williams, managing director of Delta Trust Investments, points to the PowerShares S&P 500 Downside Hedged Portfolio (NYSEArca: PHDG) as a good way to ride the waves. PHDG tries to provide positive total return in a rising or falling market wih limited correlation to equity and fixed-incomer eturns. [ETFs to Limit the Damage of a Stock Correction]
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Max Chen contributed to this article.