Euro Crisis Drives Fear Money to Safest US Stocks
For months, we have warned about a massive sovereign debt crisis sweeping across the globe, causing a chain reaction of financial and geopolitical consequences.
We told you how the world’s most indebted governments must pay the price for their obscene borrowing and money printing.
We explained that a fundamental shift was under way in the way you earn, invest and save for retirement.
Now, that shift is hitting the fan in Europe, especially in Italy.
Italy is the third-largest economy in the euro zone. It owes more than Spain, Portugal, Greece and Ireland combined. And its woes go all the way back to 1999 — the year it decided to adopt the euro.
Under the knuckle of the European Union, productivity in Italy plunged. Unemployment soared. Its gross domestic product (GDP) shrunk. Economic growth ground to a halt. Debt burdens ballooned.
And now, on top of financial woes, Italy has been torn by a particularly contentious national election. Anti-euro parties have gained control of the government. Most Italians want out.
No wonder the euro is collapsing and smart money is FLEEING Europe!
Italy is just the most recent example of troubles in Europe.
Spain, the U.K. and even Germany could face similar financial and political turmoil.
So it’s little wonder that savvy investors are rushing to get their money out of Europe and into the biggest, most liquid markets on the planet.
And the biggest, most liquid of them all is the United States.
So it’s no wonder U.S. stocks are rising.
But it’s one thing to know that money is flooding into U.S. stocks. The bigger question is, into which ones?
My Answer: The SAFEST Stocks
Foreign investors are running away from danger. They’re in no mood to speculate. They do not want risky stocks.
What they want are stocks that have the strongest balance sheets, the most reliable earnings and the steadiest dividends.
Typically, safer stocks underperform in good times and outperform in not-so-good times. But since safe stocks are becoming a magnet for wave after wave of fear money from overseas, they’re bound to go up more than most other stocks.
Ironically, many of the safest stocks could also be among the most profitable.
We already see that trend in many sectors. With smaller, higher-risk companies, you often get the worst of both worlds: more risk AND less growth at the same time.
To help you find the safest, most profitable stocks, I created our stock and exchange-traded fund (ETF) ratings. They are among the only investment ratings in the world that include safety as a major factor.
I’ll give you a list of the top 10 in my next post. In the meantime, for free ratings and daily updates, you can go here.
Good luck and God bless!
Martin D. Weiss, Ph.D.
Founder, Weiss Ratings