Editorial Contributor
While the aggressive strategy for exploiting Eurozone survival and recovery would be to go long of, say, the Spanish or Italian index, I am attracted to what I see as the higher-quality DAX. The German market is especially sensitive to economic upturns, given the number of industrial companies it contains. It is also inexpensive, trading on just 11.5 times its average earnings of the last 10 years. The DAX is well poised to make it back to its all-time highs in the 8152 region in the coming months. While it has twice peaked and then suffered major bear markets having reached those levels, I don’t think it would necessarily do so again. I would seek to enter position trades after the index has dipped below its 13-day exponential moving average and then rallies back above it.
CHART - SILVER
40 | www.financial-spread-betting.com | January 2013
SiLvER I have a very bullish outlook on silver and think 2013 could be the year when the semi-precious metal starts to live up to my expectations once more. Admittedly, there are more than a few who believe silver to have been in a bubble that burst in April 2011, and that further significant declines await. But I see the action since that time as being a major correction within a long-term bull market. Silver’s dramatic run-up and collapse in 2011 does have some of the hallmarks of the end of a speculative boom, as in 1980, however, although I argue that the parallel is overdone.
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