ECB policy is 2-3 years behind the Fed.
Greenwich, CT (PRWEB) August 06, 2013
A recent commentary posted on the Greenwich-based MVS Management website and titled: The Coming Turnaround in Europe: How Central Bank Policy, Currency Moves, Emerging Market Follies and US Competitiveness Will Lead to Great Opportunity on the Continent; states that European assets are currently undervalued.
MVS' Olympitis believes a year after ECB head Draghi pledged to protect the Euro at all costs, the currency risk has dissipated, which combined with more focus on growth as opposed to austerity and continually improving economic numbers will lead to European out-performance.
The comments also state that valuations are much higher in the US than in Europe and MVS expects that gap to close significantly. A major factor in that assumption is that ECB policy is "2-3 years" behind the Fed and continued injections of liquidity will lead to a "weaker, more competitive Euro" and a buoying of asset prices much as we have seen in the US.
Additional evidence to support the thesis center around the Emerging Markets inability to diversify their economies and lower US energy costs that are being passed on to Europe.
The full text of the comments is available here: http://www.mvsfunds.com/uploads/MVS_3Q13_Europe.pdf
MVS is a Connecticut based Investment Advisor and Family Office that invests in, develops and distributes alternative investments.
For more information, please visit: http://mvsfunds.com/
This report was prepared by MVS Management LLC and reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security or advisory services. All information contained herein is for informational purposes only.