Recent performance concerns notwithstanding, history demonstrates that country leadership tends to shift. The probability that Europe will need to take additional stimulus measures to keep its “preserve the euro” pledge should stimulate demand for “cheaper” European equities.
Moreover, investments like iShares EAFE Small Cap (SCZ) demonstrate definitive stock uptrends. On the income side of the ledger, SPDR Barclays International Corporate Bond (IBND) has charted a favorable course since September.
3. Question Common Sense. The one thing that never fails to fascinate me is the ability for certain industries to defy the so-called odds. For example, our country has been unwilling to fully embrace natural gas as a clean energy resource, even in a transitional sense. Environmental concerns place restrictions on pipelines as well as drilling, while fears of rising prices lead officials to restrict exporting. One might surmise that hits to profitability in the sector might coincide with share price concerns. And yet, natural gas companies via First Trust Revere ISE Natural Gas (FCG) remains in demand.
In another example, trouble with both Obamacare sign-ups as well as support for the law itself would seem to cause uncertainty for health care companies. Add to the mix an onerous tax on medical device makers and you might think twice about investing in iShares Medical Devices (IHI). Perhaps you shouldn’t. The fund hit a new all-time high on “Blue Monday.”