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Buy Europe

Europe has been a basket case compared to the US for a long time and it is now. So I want to buy European stocks!

What?

Let me explain.

Europe has been economically weak for the last several years. As a result, the European Central Bank kept a very loose monetary policy. That kept up the economy from dropping into recession and held up the stock market to some extent.

Then the Fed started raising interest rates a year or so ago. This led to ideas that the ECB would follow. But that would plunge the European economy into a recession since they were already bumping along at about zero.

But the ECB has instead surprised everybody and said they would actually ease monetary policy even more! They are doing this due to some recent economic news that the economy was slipping into a recession.

Now take a look at the chart above. It shows that developed markets, dominated by Europe, are cheaper relative to the US stock market in decades!

This can create a great investment opportunity!

So we have a very cheap market combined with an influx of liquidity. That is a recipe for a bull market in European stocks.

You see the best time to buy a stock market is at the pit of a recession. We don’t have that here but we have an economic dip nonetheless.

Recently, the ETF called EFA has started to outperform the US. So my attention is now turning to Europe.

The chart below shows recent price action.

My strategy is to buy a long term option on EFA to capitalize on the expected rally.

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New dates and locations for Stock Financial Freedom System!

We have another series of our live seminar, Stock Financial Freedom System, coming up. It is really very different from in the past.

First, the content is different and more interactive. We are going to be spending more time doing trading and less time learning trading.

Second, we are doing the course all over the country and soon all over the world.

We have planned upcoming events in Orlando, Los Angeles, and Las Vegas.

Click the picture above to learn more and to register.

For a short time only, I am gifting full scholarships to all of these events! You could potentiall come for free.

So click on the picture above and apply for a free seat for you and a friend!

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Oil Still bullish.

I’ve been bullish on oil for months now. I am bullish not because I see an increase in demand but a cut in supply.

Yes, demand may climb if the global trade war ends, thus stimulating demand. But we don’t have an end to the trade war yet. So let’s assume that demand will not be increasing.

But the supply is suffering.

On one hand, countries like Venezuela and Iran are shipping less oil due to poor maintenance and sanctions. Libya and Nigeria are also shipping less due to internal domestic violence.

But the keys are the US, Russia, and Saudi Arabia.

Right now the US is shipping a lot of oil but rig counts are declining which suggests that there will not be an increase in supply in the coming year.

Russia has publicly said they will cut production to boost prices. Russia is a one trick pony economy that entirely relies on oil exports. They are suffering from government budget shortfalls and need the money. So they are publicly saying they are reducing supply and making more money due to the increase in price.

Most importantly, the Saudis have cut production a bit and this is the key that is causing oil to climb. They are making more money as the price is climbing higher more than they are cutting production.

My objective is for oil to get into the high $60’s and perhaps $70 per barrel.

I’m using a long term option on the ETF USO to make money.

The best way to follow my oil trades is to subscribe to Wall Street Winners. This is the main newsletter that I give specific trades. Click here for more info.

We have a free version, with less analysis and no trades but great analysis, which you can read on my blog, courtneysmith.com.

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