Tuesday, July 9, 2013
Markets in Europe have made major lows
For the first time in my life, I bought European shares, and I plan to buy more. I wasn't optimistic for a long time, although I bought some Swiss insurance stocks after the crisis in 2009. Then, last May, I took another look, as sentiment was so negative. The S&P had doubled from its 2009 lows, yet many markets in Europe were at or below their 2009 lows. Something was out of sync.
Markets in Europe have made major lows. But investors don't fully comprehend what happened in Cyprus. In the event of future bailouts, bank depositors will lose a percentage of their money. Money in the bank isn't 100% safe anymore. That's why I own stocks, and corporate bonds, and real estate.
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.