View from the Observation Deck

1. When would be an opportune time to invest in European equities?  We get this question posed to us on a daily basis.
2. As the chart clearly illustrates, the sell-off in most of the PIIGS (Portugal, Italy, Ireland, Greece & Spain) is at the heart of the problem.
3. It also happens to be where some of the best investment opportunities could be once EU leaders announce a comprehensive debt stabilization package, in our opinion.
4. Historically speaking, investors have often been rewarded handsomely by investing in the most beaten down areas of the market after a rebound commences.
5. While we don't have guidance yet on "the fix" for the debt crisis, we can monitor government bond yields, and they still signal fear.
6. 10-Year government bonds yield 24.39% in Greece, 10.08% in Portugal, 6.93% in Spain, and 5.97% in Italy.
7. For comparative purposes, aside from the PIIGS, New Zealand has the highest yielding debt issued by a developed nation at 3.31%.
8. Unless an investor is willing to accumulate a position in European equities over time, perhaps it is best to wait for more guidance.