David@valuealigned.com
1-732-800-2375

Blog

BUY EUROPEAN STOCKS DUE TO THIS GRAPH

//
Posted By
/
Categories

In Europe, investors looking to generate income need to turn to stocks as yields on corporate bonds continue to slide. The spread between European stock yields and yields on low-grade debt, which inverted in 2013, recently rose to the highest in favor of shares since at least 2005.

We bought a big position in Europe in the hedge fund a couple of months ago. BUY European stocks – that’s what this indicator says. A major reason for the strength in the Euro. And a good reason that US stocks have stalled. The S&P 500 yields 2% while the high yield debt is 5.70% – No inversion there, and another reason the European stock market is more favored than the American stock market.

Stocks in Europe have higher yields than their junk bonds. BUY European Stocks.