The Weekly View: Restoring Europe to a Neutral Weighting
My thanks to Rod Smyth, Bill Ryder and Ken Liu of RiverFront for their highly-regarded strategy letter. Here is the opening paragraph:
Last week we completed a process (begun two weeks ago) of restoring our weighting to European markets to bring them in line with our Price Matters strategic weightings in our portfolios. Our rationale is simple - all three of our investment rules suggest that being underweight is no longer appropriate.
David Fuller's view The Weekly View's three investment rules remain as sound as any you will find.
While the US stock market remains the most influential by far, in recent months Europe's outperformance has improved sentiment globally. As talk of an imminent euro collapse has faded, there has been even less justification for hunkering down with Treasury bonds and the US dollar.