The Problems in Europe Come to A Head, and Morgan Stanley's Bet on Russian Farms

In my October newsletter, I wrote that Germany and France have a huge incentive to not let the Euro blow up. Today, two large European banks warned investors of problems, Deutsche Bank and Dexia, a large French and Belgian bank. The French and Belgian governments or going to support Dexia with capital, and Deutsche Bank is massive with lots of capital. However, as I have stated repeatedly, the Eurozone issue will get resolved one way or another, and market participants are driving the issue. In the meantime, the stock market in the US keeps getting cheaper, but ultimately once the Europe issue gets resolved, and it is taking forever because of somnambulent politicians and a poorly thought out regulatory structure, a big overhang will be taken away. The other issue is thecollateral damage in the global economy because of the problems in Euroland. In the meantime, for stock investors, the prices keep getting more attractive, at least for some of us. Nice story on Morgan Stanley and how hard it is to invest in Russia and things you don't know much about-http://www.bloomberg.com/news/2011-10-04/morgan-stanley-bet-the-farm-in-ukraine-before-fed-bailout-by-u-s-taxpayer.html More information on the issues in Europe-http://online.wsj.com/article/SB10001424052970204524604576610972814688198.html?mod=WSJ_hp_LEFTWhatsNewsCollection And even more information-http://dealbook.nytimes.com/2011/10/04/banks-in-europe-face-huge-losses-from-greece/?ref=business As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder. Yale Bock, CFA President, Y H & C Investments