Zero Earnings Growth

Zero? Really? That is what JP Morgan is calling for in the US in 2006 and so they are favoring European equities.

Zero growth would be a surprise but not growth at a slower rate. Still I suppose zero could be correct, who knows for sure?

This ties in with my I Was Wrong post from yesterday. I have been on the European bandwagon since before the start of this blog last fall. Most of the European stocks I own for clients have done exactly what I'd hoped for; low volatility, good yield and periods of price appreciation.

Part of the reason for my interest on Europe has been potential demand, that I think still exists, for Euros. If the demand for Euros does not play out I still have low beta and high yield. I think that will continue to be a good overweight for the foreseeable future.

I believe this positions my clients for more than one probable outcome.