Again and again, European sovereign debt concerns have dominated the business headlines. It’s becoming more apparent that if and when policymakers are able to implement reform, Europe may continue to struggle. However, if the European countries are able restore trust in their creditworthiness, Europe should be able to avoid a recession. According to MFS, an asset management firm, in an effort to create more meaningful fiscal union in the eurozone, the ideas of a eurobond (debt sharing) and for the European Central Bank to act as a lender of last resort (much like our Federal Reserve) hope to bring stability to the sovereign debt crisis in Europe.
While the sovereign debt issues of Europe cannot be ignored, it’s important to remember that globally stocks remain cheap by conventional valuation. We still remain convinced that investors will be rewarded in the long-term for holding quality investments and staying globally diversified. In times of market volatility and economic uncertainty, it’s easy to get distracted by screaming headlines, but we believe we should remain focused on both the fundamentals and your long-term plan. We will continue to monitor the actions in Europe and will proactively contact you if we feel a change is needed.
Sincerely,
Mark J. Smith, CFP®, CPA/PFS, CIMA®
Principal
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Mark J. Smith, CFP®, CPA/PFS, CIMA®, and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Past performance may not be indicative of future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected.
