An amiable apparatchik by the name of François Hollande has one foot in the door of the Elysée Palace and European policymakers, having flirted with austerity and gotten GDP growth numbers with a negative sign in front, now seem to have rediscovered a liking for growth. In the US, the economic data so far is still pointing to more upside in US equities and the strong manufacturing data out this week reiterated the growing strength of the US economy. Therefore I wouldn’t follow the adage of ‘sell in May and go away’. In fact, this year, I would definitely stick around. I believe that the ECB will play a larger role sooner than later and therefore I am turning more positive on European stocks. The ECB is the only reliable fire brigade Europe has and not using it to fight the fire of the sovereign debt crisis is madness. I maintain my bullish view on Gold. Gold is not just a weak US dollar play, but a play against paper currencies of any color.
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