Likely now and back in Q4/2008, we have appeared early. Other times, we have appeared plodding (as in the straight up move in the 12 months to April 2010). We underscore a rolling restructuring, not unknown in prior cycles albeit for different reasons as in the 1990s. Generically for capital markets we envisage similarities to the late 1940s/ 1950s cauldron for credit discrimination as espoused by Benjamin Graham. Many companies exist globally with financial and business strength in our favored energy, healthcare, industrials and information technology areas as well as elsewhere. On geographic realism, the Euro decline to $1.23 (close to our stable zone of $1.20) reduces currency risk to returns from Europe, angst notwithstanding. We favor raising European exposure from Japan where yen strength risks becoming onerous.
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