WSJ.com - French 'No' Vote Blocks EU Treaty; Huge Setback for a Stronger Europe

WSJ.com - French 'No' Vote Blocks EU Treaty; Huge Setback for a Stronger Europe

The best one word description for the European economy is malaise. There is no end in sight. The central bankers are lowering interest rates in an attempt to boost the economies. Unemployment in France is over 10% and in Germany over 12%. I believe it was 1847 when the US tried to isolate the US economy. Europe tries to hard to protect its manufacturing base. America has benefited by buying labor intensive products from low cost producers. The US in effect profits from the low cost goods as this allows our companies to focus on more profitable enterprises.

Stocks in Europe have done well recently. The reforms in Germany and France will improve or lower the total costs of production. For example, it is now legal for the French to work more than 35 hours per day.

The Eurodollar has weakened recently. Relative interest rates and relative growth rates are now in favor of the US dollar. Foreign investors in US dollars should benefit from superior returns and a bonus from currency moves. The US BULL market is alive and well.

BUY THE BIG BULL!