The fireworks will start with Spain or Italy

Here’s what I had to say about Europe on Capital Account with Lauren Lyster on Thursday night. I’m not bullish on the real economy there (but I still expect relative share outperformance due to lower P/Es). The US is having a bit of a data surge to the upside: housing, employment, manufacturing, all of these numbers have been better of late. What I say here is in line with what I predicted in my ten surprises for 2012.

This week’s Pro Newsletter will focus on wealth protection in a world of recurring crisis. Clearly, if people like John Paulson can lose 50% of their money, you know this is a dangerous environment. For investors, the bias has to be toward risk-off until it is clear that unexpected economic shocks are less threatening.

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