Analysis on Eurozone crisis vs US crisis:
- Both have strong central banks that have highly effective levers to mitigate systemic risk.
- The extensive printing of currency in both economies can potentially devalue the U.S. dollar and the Euro respectively.
- It will be up to these same central banks to hold off inflation.
- Look for natural resource produces at the lowest part of the cost curve
- Look for persistent advantages that may develop for a given market. Examples:
- low energy prices will benefit businesses with high-energy expenses
- low materials cost will benefit production companies
- When you invest in a market, become an expert in that market
- Be sensitive to the ethical implications of your investments; this is especially important when investing in healthcare or for-profit education.