Boost holdings of Europe and Japan says BlackRock's Koesterich


As last week made clear, central banks in Europe and Japan are getting more aggressive while the Fed moves in the opposite direction, says the chief investment strategist for BlackRock.

Implications: 1) Global interest rates are likely to stay low even as the Fed pulls back; 2) The dollar (UUP, UDN) is likely to strengthen; 3) ECB and BOJ liquidity, while maybe providing a boost to U.S. stocks, is almost certainly going to add a big lift to European and Japanese equities, and U.S. investors should consider boosting holdings of both.

Japan equity ETFs: DXJ, EWJ, NKY, DBJP, EZJ, EWV, JPNL, ITF, JPP, JPNS, HEWJ, FJP

Broad European equity ETFs: VGK, FEZ, IEV, EPV, HEDJ, EZU, FEU, FEP, UPV, ADRU, FEEU, EURL, EURZ, FIEU, DBEU

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Comments (2)
  • SharkDude
    , contributor
    Comments (763) | Send Message
     
    Buy buy buy all the time
    10 Jun 2014, 08:44 PM Reply Like
  • SharkDude
    , contributor
    Comments (763) | Send Message
     
    I love it. ECB cuts rates 10bps!!!!! Ten basis points and euro is supposed to devalue by 5 to 10%?!?!?!?! How does that make sense.
    10 Jun 2014, 08:55 PM Reply Like
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