- A "close your eyes and buy moment" is approaching for recently-battered Europe, says BAML's London-based macro and events group, which would like to see four issues resolved over the coming two weeks before jumping in:
- 1) U.S. data has started to improve, making Thursday's retail sales number an especially important one for the direction of interest rates; 2) Bond volatility could be set to decline, especially given the light issuance schedule in July; 3) A last-minute agreement on Greece is BAML's base case; 4) Retail outflows and heavy supply volumes could lead to a final capitulation leg down in U.S. and global stocks.
- What to buy? Financial stocks continue to be a favorite for the team, with goings-on in Greece preventing the long-only community from accumulating the banks. The MSCI Europe Financial ETF (NASDAQ:EUFN) is up 7.1% YTD.
- Source: Barron's
- ETFs: VGK, FEZ, HEDJ, IEV, EPV, EZU, FEU, EEA, EURL, FEP, UPV, DBEU, ADRU, HEZU, FEEU, IEUR, FIEU, DBEZ, FEUZ, SBEU