I’m regularly receiving messages from investors who think U.S. stocks are too high.
On Friday I wrote: “Ask Arora: If you think stocks are too high, get ready for an opportunity Monday.” Now the opportunity is here: You can buy blue-chip stocks at a big discount.
After the first round of French election results, you can purchase European stocks that are much cheaper than U.S. stocks. Instead of inundating you with all kinds of metrics, I will let a chart tell the story.
The chart
Please click here for the annotated chart going back seven years. It compares the S&P 500 ETF SPY, with the iShares MSCI Eurozone EZU, and Wisdom Tree Europe Hedged Equity ETF HEDJ. Please note from the chart that European stocks have underperformed the S&P 500 by 118% as well as 90% on a currency-hedged basis.
Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.
French election results
Going into the weekend, there were two nightmare scenarios. The ultimate nightmare was the National Front’s Marine Le Pen winning and, eventually, pulling France out of the European Union (and, thus, the currency bloc). The immediate nightmare was a May 7 runoff between Le Pen and Jean-Luc Mélenchon of Unbowed France, or France Defiant. Le Pen is far-right, and Mélenchon is far-left….Read more at MarketWatch
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