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European Exposure Is Anathema

Anything even remotely touching Europe is down. 
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What's working? How about companies with stocks that benefit from low rates and lower gasoline prices, either because they have steady dividends that beat bonds or because they are going to beat the numbers because the consumer's got a few more bucks in her pocket?

What's not working? Anything even remotely touching Europe. Because Europe's in a recession, with no sign that things are getting better.

The bifurcation is incredible. You step into something with European exposure and it's as if nothing else matters at all.

But if you are in any utility or any real estate investment trust, you are winning, because those are domestic with good yields.

The market is about as unsparing as I have ever seen it to be. The idea that there could be value in a stock connected with Europe is now simply ignored.

And energy? Worthless. Like it has no value at all.

It is a market that is devoid of individuality. No international company's stock can overtake the prevailing winds, unless it is taken over.

We have parallel tracks of intense bear market behavior and intense bull market behavior. These average themselves out if you are in an index fund, but will destroy you if you have an ever so slight exposure to the worst of the industrials and the oils.

And if you don't believe me, look no further than Alcoa (AA). The fact that it has Europe brings it down, even as everything else is good or getting better. If that's the case, then it will be one tough earning season, as Alcoa's about as good as it is going to get if you run an international business.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.