This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

What Europe and Japan Really Need Now Is Ben Bernanke

Stocks in this article: TSCDY TM SAP SNE SYT

NEW YORK (TheStreet) -- I'm not sure how much spare time Ben Bernanke currently has. But the European Central Bank and the Bank of Japan really need him now.

Like or loathe the range of stimulus policies he enacted, during his time as Chairman of the Federal Reserve one clear impact is that the U.S. economy is now in a much better place than the economies of Europe or Japan.

Read More: Warren Buffett's Top 10 Dividend Stocks

Take today's disclosures. In Japan, household consumption fell for a fourth successive month since the country's national sales tax was lifted from 5% to 8% in April. Meanwhile, retail sales and industrial production data were also below forecasts, while inflation measures stalled as well.

In the eurozone, inflation measures fell to a five-year low and unemployment was stable -- at a mere 11.5%. That's not good. In the UK, supposedly the strongest European economy, the leading food retailer Tesco (TSCDY) issued a fourth profit warning, citing difficult trading conditions.

That's why both economic areas need Bernanke.

Central bankers in both Europe and Japan have their heads in the sand at the moment. Eventually they will realize that any success Bernanke had was from not being scared to repeat quantitative easing and related policies experiment. Mario Draghi of the ECB cut the deposit rate to zero. In Japan, Shinzo Abe is running his "three arrows" experiment.

But those moves are just a start. Today's data indicates more action is needed -- and fast.

Even without Bernanke, both regions will probably get to a recovery eventually. But each day they prevaricate the worse it is for the rest of the world, including the U.S. indices, given business interconnections globally.

Read More: Tesla's Model X: Everything We Know

So should investors stick with just U.S.-listed or U.S.-focused companies?

Not necessarily. Bad news in Europe and Japan means lower share price valuations -- no surprises there. But if you can buy globally focused European or Japanese companies listed on the U.S. markets in ADR form, then you get potentially the best of both worlds. And you can buy companies that are not yet consensus buys.

Toyota ( (TM) ) in automobiles, SAP ( (SAP) ) in technology, Sony ( (SNE) ) in media and consumer goods, and Syngenta ( (SYT) ) in agriculture and biotechnology are some names worth considering.

Sometimes in equity investing it is so bad that it's time to buy. That is Europe and Japan today.

At the time of publication, the author was long TSCDY, TM, SNE and SYT.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates TOYOTA MOTOR CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate TOYOTA MOTOR CORP (TM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs