‘I like Europe because it’s not the US’: Pro
The recent budget conflagration in Washington has pushed investors to put money to work elsewhere, UBS' Paul Richards said Thursday.
"If that's the best that they can give us, that's not a deal in my view," said Richards, head of UBS FX Distribution for North America. "I think we get about a five- to six-week window of a domestic recovery here in terms of stocks and bonds in the U.S., but you will not get foreign participation there. Absolutely disgusted with this outcome."
"They've had enough," he said. "They had enough on December 31 last year."
Richards said he liked overseas opportunities.
"I like Europe because it's not the U.S.," he said. "I like the fact that I'm seeing foreign investors today getting out of the U.S. dollar. They are reallocating capital away from the U.S. New money is not finding its way here after this outcome."
(Read more: Err on the side of market gains: Trader)
"We're 10 percent of a foreign-exchange market, and we're seeing money going out of the U.S. after this deal," he added. "So, I like Europe because of relative political stability, a central bank that is credible, system risks have dropped and it's not the U.S."
Richards said he preferred equities to the U.S. dollar/euro play.
"I think you've got to be careful in the currencies," he said. "I think my best trade would be on a relative basis to be long European stocks over U.S. stocks after Thanksgiving."