WE HAVE TO FOCUS ON EUROPEAN MARKETS

Why? Because they are still undervalued compared with the US markets. Since 1st January the three mediterranean countries have made great performance. In 2014 so far Greece +7%, Spain +4%, Italy +2%.

Since last year 1st December the SP500 only made 1,6%. During this period those three indices made more than 8%. But they are still lagging and now just catching up. After the brutal correction in the last couple of years, they are still far from the historical tops. The tops are still far and I do believe they will catch up the big US indexes and they are going to close the arbitrage gaps.

The outlook is very bullish in Europe for 2014. Those stock markets are undervalued and far not pricey as US stocks.

I see great buying opportunities in 2014.

• FTSE
• IBEX
• CAC40
• Euro Stoxx 50
• SMI
• Greece index
• Italian index

Fundamentally all those economies are doing better and there is no real concerns any more by investors. After four year crisis they are getting better with improving GDP numbers and lowering unemployment rates. Big investors like Soros, Bill Gates started to invest into Spain. The crisis is over in Europe.

Technically all european charts look great and I cited here some templates. Many charts are now close to breakouts because they show some “CUP WITH HANDLE” or “REVERSAL HEAD AND SHOULDER” patterns.

IBEX:

EUROSTOXX50:

FTSE:

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The BFM Assets Team.