With the boost produced by today’s announcement of a new round of mortgage buying by the Fed the Cabot Emerging-Markets Timer remains solidly positive. We’re taking the opportunity presented by the recent weakness in Europe to buy an undervalued European mega-bank. This will provide some good reward potential while we wait for the emerging markets to work their way out from under their recent doldrums. A recovery in Europe is a definite prerequisite for a recovery in the major emerging markets, and this bank should lead the way.
