Tags: Hedge Fund Expert Odey European Stocks Are Cheap | So Buy Now

Hedge Fund Expert Odey: European Stocks Are Cheap, So Buy Now

Tuesday, 27 Sep 2011 08:05 AM

Europe is going to remain locked in crisis mode but stocks there have already priced in more bad news and are good buys right now, says U.K. hedge fund manager Crispin Odey.

"It may be confusing to find someone who believes that a crisis is on its way but is also happy to buy equities ahead of the crisis," Odey writes in his latest bulletin to investors at Odey Asset Management, according to MarketWatch.

"My reason is that the worries have been there for so long, the causes are so obvious and the valuations are so cheap that this is a case of buying early. For me the crisis will bring resolution and with it higher prices."

The outlook for Europe remains weak, but investors have been behaving very cautiously, Odey says, point out that shares are "also pricing in a very high margin of safety."

Fears that Greece may default on its debts and threaten the financial system there and in the U.S. have been pummeling stock markets on both sides of the Atlantic.

Wary investors, experts say, will likely remain on the edge of their seats and deal with uncertainty for weeks to come.

"The next three weeks are absolutely critical, and they can still stabilize the markets, but I wouldn’t tell my clients to put money to work until we see it," says Rebecca Patterson, chief market strategist at J.P. Morgan Asset Management, the New York Times reports.

"As we stand right now, European policy makers have gotten well behind the curve. It’s not about the periphery anymore; it’s about the core, too."

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Europe is going to remain locked in crisis mode but stocks there have already priced in more bad news and are good buys right now, says U.K. hedge fund manager Crispin Odey. It may be confusing to find someone who believes that a crisis is on its way but is also happy to...
Hedge Fund Expert Odey European Stocks Are Cheap,So Buy Now
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2011-05-27
Tuesday, 27 Sep 2011 08:05 AM
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