My latest commentary piece for Reuters has gone online. In this one, I argue that investors in Europe should be afraid of a crash in the expensive US market. A major correction in the US will likely hurt European markets significantly. Read why it could even be worse than after the tech bubble crash in 2000:
European equities won’t provide safety if US bubble bursts: Klement
Dec 12 - High U.S. equity valuations have been ringing alarm bells in recent weeks, signalling that the market may be ripe for a correction. Investors may respond by moving into cheaper European markets, but investors likely won’t find much safety across the pond because a significant downturn in the U.S. would likely drag Europe down with it.
I shall not suffer any loss at all. I shall not sell.
You betcha. US and European equities are highly correlated. Recent underperformance of European equities does not indicate overperformance in upcoming bad times.