Skip to main content

Posts

Showing posts from April 17, 2011

Can you make money in Europe?

By Rick Walter When Moody's cut Ireland's debt to just above 'junk' last week, making money in the European markets  just got a little bit more riskier. The markets still have to deal with the debt problems of Portugal, Spain and Greece. Monetary policy by the the Euro Union and the U.S. is still a ways off from normalizing. However, the reason that you would want to invest in European markets is because these markets gives you the potential to increase your portfolio’s total return, they act as a hedge against dollar assets and also gives your portfolio diversification which reduces overall portfolio risks due to the low correlation of these markets to U.S. markets. Long-term evidence also suggests that international markets outperform U.S. markets in most periods, therefore investing in Europe may and can help you save more for retirement. But can an investor make money in Europe today? Should you take a chance and invest in Europe while monetary policy rules the