THE HOMO FISCUS

INSPECTING OUR ECONOMIC CONDITION

How a Rocky Eurozone May Benefit US Markets

Investors find domestic megacaps, such as Wal-Mart (pictured above), increasingly attractive in face of the Eurozone crisis.

NYT – As the Eurozone becomes less and less stable, large megacaps such as Wal-Mart (pictured above) and Microsoft are becoming increasingly attractive. These stocks, which generally entail a market capitalization of $50bn and above, offer features such as dependable stability and attractive dividends with which investors have taken solace in face of a precipitous Eurozone.

Even more appealing, though, is the desire to move investments out of Europe and back into those vehicles backed by the US dollar. This strengthening currency and capital flight from Europe have led investors to shift back into the domestic sphere and, more specifically, into megacaps. However, though they have typically performed well in the past, the exposure of megacaps to international markets by nature of their expanse have some worrying that even they are not safe from the struggling Eurozone.

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This entry was posted on July 29, 2012 by and tagged , , , , , , , , , , , , , .

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