Yesterday, CNBC interviewed the President of the International Monetary Fund (IMF) Christine Lagarde on Europe’s fiscal problems. You can see the interview here. It is well worth 8 minutes of your time.
In our view, resolution of the debt problems in Europe will take time, and will be expensive. To protect our clients, we have avoided European bonds, and minimized exposure to European equities for some time now. That being said, uncertainty regarding Europe’s fiscal imbalances and the likely cost of restructuring that the European banks will have to bear will continue to drive stock market volatility globally.
We believe that the fear triggered by bad economic news and increased market volatility will result in short-term indiscriminate selling of a wide range of quality company shares. The rational and prudent investor will benefit over the longer term by accumulating shares in great companies during this time of volatility.
Will you be rational and prudent?
This information is of a general nature and should not be considered professional advice. Its accuracy or completeness is not guaranteed and Queensbury Strategies Inc. assumes no responsibility or liability.