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Is now the time to buy U.S. stocks?



June 08, 2010 – Comments (6)

It is if you listen to investors recently surveyed by Bloomberg. Some 40% called the U.S. the world's most attractive market for investment this year. That's pretty shocking given our dour economic outlook, but these things are relative, and many are just freaked out about the potential volatility looming in Europe, China, et al.

This, however, represents an enormous change in sentiment and one that is already creating opportunities for long-term investors. Consider that since the beginning of the year the U.S.-dominated S&P 500 is down 7%, while the global MSCI EAFE index is down 18%. Should the world really be trailing the U.S. by more than 10 percentage points this year? I'm not so sure that's fair.

But what are you doing? Seeking safety in U.S. stocks or opportunistically increasing your global exposure? If you're a contrarian and like to zig when others zag, your approach should probably be the latter.

6 Comments – Post Your Own

#1) On June 08, 2010 at 7:42 PM, ozzfan1317 (68.56) wrote:

I think the US is still one of the more attractive markets. Europe has an even bigger mess than us and corruption in the brics is a real concern.

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#2) On June 08, 2010 at 7:48 PM, soycapital (< 20) wrote:

I'm buying US, china and I don't get along with stocks like FUQI and NEP. And some Brazil secondary.

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#3) On June 08, 2010 at 7:55 PM, BurntTiger (< 20) wrote:

Im a fan of TEF, really beaten down by the spain mess.

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#4) On June 08, 2010 at 8:15 PM, soycapital (< 20) wrote:

TEF is looking pretty good right now. Been keeping a close eye on it.

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#5) On June 08, 2010 at 11:53 PM, 1315623493 wrote:

S&P 500 Index ETF

-Open Interest-

Calls: 5,818,849

Puts: 12,874,885 

I wouldn't hold much water for a Bloomberg survey when the put/call ratio on SPY is 2.2  (meaning option traders are 2.2x more negative than positive). You'd be taking a huge risk going long based on that survey. 

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#6) On June 14, 2010 at 7:15 PM, zCreator (94.16) wrote:

BetapeqLLC, where do you check the Calls and Puts? Could you provide a link?

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