Dielli | The Sun

Albanian American Newspaper Devoted to the Intellectual and Cultural Advancement of the Albanians in America | Since 1909

Comments from Wall Street – Albanians and Emerging Market Investments

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By Nick Markola, CIMA®/

Last year was a very good one for investors in developed market equities but not so good for emerging market investors.  Typically markets that do well one year, could be expected to do less well in the coming years. Or, for a market that does poorly one year, the question is asked whether it will do better in the coming years. The question that some may ask is what to expect from emerging markets this year and what implications could this have for Albanians or Albania. In short, markets always provide opportunities and risks, one just has to be diligent and focused in finding opportunities while aiming to minimize risks.

Developed markets, as measured by the performance of the Standard & Poor’s 500 Index, were up over 30% last year. Or, as measured by the MSCI EAFE Index, developed markets were up over 23% for 2013. Emerging markets on the other hand did not perform well, and, as measured by the MSCI Emerging Market Index, lost 2.27% last year.  Statistics on how well Albania or Kosova did last year are still unclear but it is reasonable to assume, their economies did not do as well as the equity markets of the developed countries. It is very important to also note that performances of economies are not directly correlated with market performances, meaning there may be instances where an economy does well but the market does poorly or the other way around. The answer to the question on how well did the Albanian investors do depends on their exposure to the markets. Investors that were fortunate enough to be exposed during 2013 to developed markets probably did quite well. Folks that were not exposed to developed markets or the ones that were simply on the sidelines, they probably missed an opportunity.

Emerging markets are going through challenging times which is not a secret. That in itself presents opportunities for those willing to be diligent and do the hard work. That presents a great opportunity for Albanians. It is worth noting that part of the reason for the decline in the emerging markets is derived from the fact that the US Federal Reserve announced last year it will wind down its quantitative easing program.  This in return slowed down the capital flows into emerging markets. One needs to dig a little in the past history to understand the current issues with emerging markets. Some good stops in that history quest should be the 1980s Latin American debt crisis, the 1994-95 Mexican Peso Crisis and the 1997-98 Asian financial crisis. Every crisis is naturally different from past ones, but a good analysis of the past ones does not hurt, it just helps Albanians in potentially figuring out opportunities.

Today, the crisis in emerging markets seems very deep. There are massive demonstrations in Singapore and Venezuela, where some high profile citizens have been the casualties. There are ongoing protests in Turkey and the unrest in Ukraine has turned bloody, with a large number of fatal casualties in the ongoing clashes between the government and the opposition. Ukraine is facing a large deficit and in the quest of resolving it, the Government has decided to align itself with Russia. This is not sitting well with part of the population and peaceful protests in Kiev have turned deadly. According to media reports, government forces have fired live ammunition into the demonstrators and there are reports that demonstrators are firing back. It is a scene that nobody likes to see anywhere in the world, regardless of how far or how close it is.

Demonstrations and clashes on the streets of emerging market countries have a spillover effect into capital markets, hence a potential reason why the markets are down. There are some fears that clashes in Ukraine will result in the devaluation of their currency and a contagion effect into the rest of Eastern Europe. The effect on the Russian Ruble, Hungarian Forint and Romanian Leu remains to be seen. While waiting to see the impact of the crisis, Albanians can consider being proactive in their own countries of Albania or Kosova. People are quick to criticize the government and the institutions for not doing enough. And yes, governments have a lot more to do. Well, while there is turmoil in the emerging markets and there are issues in Eastern Europe, this may be the time for some Albanians to roll up their sleeves and get to work. Criticizing the government and institutions may or may not generate any results; however, investments in Albanian lands may be a lot more beneficial and promising for several reasons.

Such investments could help fill the potential void from disruptions in Eastern Europe or other parts of emerging markets. It also provides with the opportunity to shape the outcome on the ground in Albania or Kosova. While governments may or may not respond to criticism or demands for a different course, a direct investment in companies and the businesses on the ground is more efficient as Albanians can themselves lead such entities in the direction they want and effect the change they desire. Investors and doers are different from others because they simply do what others don’t.  Instead of waiting for the government, or for others to do things, by investing in companies and businesses on the ground, Albanians simply have the ability to get it done themselves. They will also learn firsthand about issues and challenges which they can bring to the governments attention to be resolved. They can also show others how things need to be done. This could benefit them as investors and operators, as Albanian and equally important provide much needed employment for other Albanians. At that point, their voice could also carry more weight.

In conclusion, crisis in the emerging markets are unfortunate. Loss of life anywhere in the world is unacceptable and condemned in the strongest fashion. However, crisis could also provide some opportunities for those that are willing to work diligently or have a vision. Emerging markets are currently experiencing turbulent times. Albanians should not shy away from working hard and smart to explore investment opportunities. Looking for companies and businesses on the ground to invest may not be a bad start. It could turn into a rewarding journey, in addition to providing a moral satisfaction or a greater good for the unemployed or underemployed folks at home who eagerly look west for their sunrise.

* The writer is the President of the Vatra Westchester NY Branch and the Co-Founder of APEN

 

 

Who Is The Albanian Voted Manager Of The Year!

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By Nick Markola CIMA®/

Just this week, after approximately 40 years, New York reclaimed the title of having the highest skyscraper in America. The New World Trade Center was officialy declared the tallest US stracture surpassing the Willis Tower (ex Sears Tower) in Chicago. It is very fitting that one of our own was voted this year as the manager of the year in Manhattan. The US is the Global Superpower and the beacon of hope for all. It was long established that Manhattan, or the New York City is the capital of the world. A delineating symbol of the US might, or the global dominance of Manhattan, is its breathtaking skyline Skyscrapers that adore the Manhattan skyline were influenced or built by many of the Europe’s elite. Today, they are managed by some of the most skilled managers in the world. On November 2, 2013, in a Hollywood type red carpet ceremony at the famed Roosevelt Hotel, one of the most skilled managers in the world was recognized for his impeccably work and awarded the highly coveted Manager of the Year award.  Anton Markola is the first Albanian and possibly the first ever person from South East Europe to receive such an award.

Great minds came up with the concept of sky scrapers and build them into the sky. Now we adore the architectural beauty that symbolizes the superpower of the United States and sets Manhattan apart as the capital of the world. We are indebted to the great minds, architects and engineers for giving us the skyscrapers. It also takes extremely skilled individuals to manage such marvels. Some of the most crucial deals in the world are negotiated in these breathtaking structures. Some of the complex transactions that shape the entire world take place in them. Some of the most influential people in the world live and raise families in these world renowned buildings.  Negotiations that shape lives the world over are, on daily basis, held in these wonders. Moreover, the world always looks to the US for hope and guidance. Whenever there is crisis in the world, or a big deal to be made, everyone asks when the Americans are coming. As the beacon of hope, the world is used to turn to Americans for most important needs. Who do Americans turn to when they are in need? When it comes to military intervention, Americans turn to highly trained Navy Seals. When it comes to managing their homes and temples of business, Americans turn towards the most skilled managers. They turn to the elite managers, with a multitude of great kills, many of them Albanian. They turn to someone like Anton Markola.

A highly skilled manager is not required to only have managerial skills. Elite managers need to have three distinctive sets of skills.  They need to have excellent management skills, great technical expertise and outstanding communication/people skills. As part of the managerial skill set, they need to be able to multitask, manage projects, large staff with high number of employees, guide them and motivate them to always do their best and deliver superb top of the line results. Elite managers need to posses great technical skills as they interact with many vendors. Many try and fail in this field due to the lack of sophisticated skills. Some of the technologies currently utilized in skyscrapers resemble technologies used in aeronautics. In terms of the third skill set which covers communication/people skills, top managers must be excellent communicators and have a keen ability to connect and work with different people. People skills also are required to motivate the staff, lead them effectively and constantly mentor them. Being a successful manager is a team sport. Like every good coach that needs to prepare and motivate the players, a good manager needs to always do the same with his workers. If you only have one or two of the skill sets described, that is not enough to make it into an elite manager. All three skill sets are the bare minimum for an elite manager such as Anton.

Intellectually handicapped ones believe that being a successful building manager, is just being a super. In reality, being top manager is anything but that. It requires dedication, lots of hard work and above all, it requires solid education. Anton holds a degree from the US, a law degree from the University of Prishtina and a multitude of certificates, from the US, in various fields where he stays competitive and abreast of latest thinking and technologies.

Who Is the First Albanian to Rise to the Top of Management Field?

Anton Markola comes from a small village called Kllezna in the Muncipality of Ulqin which sits approximately mid distance between Ulqin and Shkoder. Kllezna is known to some for the medieval town of Shas. Despite its relatively small population, Kllezna has one of the highest college level education rates per capita of any Albanian place. A month before Anton turned four years old, a major tragedy struck our family. Our father Mark unexpectedly passed away at the very young age of 31. This was very traumatizing for our entire family and it was the hardest on our mother Maria who was only 26 years old when our father passed away. Anton learned early on about responsibilities. In fact, at a very young age, he became the man of the house or the head of the household which brought responsibilities and obligations. First four years of elementary education, he completed in Kllezna. Next four years, from grades 5 through 8, he attended elementary school in Katerkoll (Vladimir as it is also known). This required that he, on daily basis, walk over 6 kilometers to and from the bus, or walk over 12 kilometers to and from school, rain or shine. By the time he turned 14, our family moved to Ulqin so Anton could attend high school. This is the time when he began working and holding full time summer jobs to help our mother provide for the family. While many of his 13-14 year old peers were busy tanning at the beach or playing ball, Anton was busy doing manual labor jobs to help our mother raise money for the family and pay for our future education.

Life under communism was hard.  Life for a widow with two small children was even harder. Anton early on saw our mothers pain, suffering and hard work and understood the importance of doing something with your life. He was always a great student in school and top of his class with excellent grades. He received countless awards and honors for being an excellent student. He accomplished all this with a simple philosophy that, sooner or later, hard work pays off and our mother’s words that after every storm comes sunshine, always rang true. After high school, he decided to pursue a University Degree in Law from the University of Prishtina in the mid 1980s. Anton wanted a university degree and diploma, but he wanted no part of dropping out or spending a decade as a student in Prishtina. He knew how hard it was four our mother to provide for us and pay for his education. At the end, he knew that he had a family to take care off in Ulqin and he did what he does best. He worked very hard and completed his law degree from the University of Prishtina in a relatively short term, of just 4 years. A feat that just a small percentage of students accomplished, typically the smartest and hardest working ones. Once again he was in the top of his class.

Anton returned to Ulqin in 1989 with a University Diploma and big dreams for his future. Anton managed to get a highly coveted job as the Public Prosecutor in Ulqin. The winds of war in the region began blowing and Montenegro was not spared. Politics of the situation played a negative part and being an Albanian Catholic was a liability. Being highly educated, young and ambitious was even a bigger threat to the weak ones that called the shots. For mysterious reasons which are unknown to this day, Anton was forced out as of the highly coveted job as the Public Prosecutor and found himself unemployed. Shortly thereafter, he was also drafted by then national army. We were both drafted, and both refused to fight the unjust Yugoslav war. We fled the country overnight and Anton moved to Brussels in Belgium. In 1992 Anton made the famous journey that many Albanians have done before him. He crossed the Atlantic Ocean and came to the United States, settling with our uncle in the Bronx. A young lawyer began his new life in the adopted country in the early 1992. He began a new journey in the best country in the world. Growing up under communism meant that in school, instead of English, he learned Russian as foreign language in school. This unfortunately meant that he began his life in the US without speaking a word of English. He did not know how to speak English, but he knew what he has learned in life thus far. He knew that hard work will offset everything. Typical of many other immigrants, Anton began his new life as a legally trained lawyer doing dishes and bussing tables at restaurants. While many highly educated people would have been depressed and discouraged by having to work such menial jobs, Anton was anything but discouraged. He was very happy. He never ceased to believe in hard work and saw this harsh beginning as just that; a harsh beginning that would lead to greater tomorrow. Boy did it lead to great things. Shortly thereafter he began with real estate and management then started managing large properties. Along the way, he was very fortunate to marry his wife Anna, a great lifelong partner with whom he has two great boys, Mark and Joseph. It is too early to tell what the boys will end up doing in life, but both share a simple trait from the parents and that is the trait of hard work. While Joseph could be a scientist or a businessman, my bet is that Mark will follow the previously paved path to a law school. At the end, he knows he is my favorite older nephew.

Anton’s hard work resulted in moving up the corporate ladder. He currently manages one of the crown jewels of the real estate in the world, a skyscraper that towers over 78 stories over Manhattan. Anton currently represents a well known real estate powerhouse of Douglas Elliman where Mr. John Janagelo is his mentor and close friend. In fact, it was Mr. Janagelo who early on saw Anton’s great potential, his outstanding skill sets and took him under his wing, making him one of the most trusted folks at Douglas Elliman, their go to person and one of the top Building Managers in the world.  Very often, when Douglass Elliman is looking to demonstrate its might, Anton is called in to handle the job. In part, thanks to Mr. Janagelo vision and guidance, an Albanian immigrant from Ulqin was mentored and groomed into one of the elite global managers.

America is a land of opportunity. It is the only such place in the world where you can come in as an outsider, equipped with nothing else, just with a desire to succeed and strong work ethic, where you can make dreams come true. Anton’s hard work and stellar success in managing some of the most complex skyscrapers in the world did not go unnoticed. People that Anton works with and interacts are fully aware of his excellent quality work. Even his competitors are aware of what top level manager he is and are taking notice. They all came together this year to pick the best manager there is in business and their work was cut out for them. They easily picked Anton as the Building Manager of the Year for 2013.

The ceremony of recognizing the best in business was held on November 2, 2013 at the world renowned Roosevelt Hotel in New York City. Our family could not have been more proud. Our seventy year old mother often complains of knee pain. Due to some miracle, that night she had no pain of any kind in her knees and despite being a short lady, under five feet, she stood very tall and could not hide the proud smile the entire night. Her life partner and husband passed away 43 years ago and this night she could be very proud of the work she did raising their children. Anton’s wife and boys were very proud too. The boys decked up in expensive and neat tuxedos looked like real men now, mingled with the attendees and were very proud of their father’s accomplishment. By coming to this country with nothing and accomplishing so much in short 20+ years, their father set the bar pretty high for them. Hopefully, they will pick some of the best traits from the father and will surpass him. We all are rooting for that as we want them to make the family and all Albanians even more proud. As the younger brother, I was happy and proud beyond description. All I could think is that every brother would wish to see a brother succeed like this in life. The gala dinner honoring my brother was a great honor for our entire family. It was a great honor for all Albanian Americans to celebrate such an amazing success in a country of over 300 million. It is everyone’s dream to see the US. Millions and millions of people globally dream of making it in the Capital of the world. Only a handful, at the end, succeed in making it in NYC and Anton Markola made it. He is a true testament that, sooner or later, hard work pays off. Anton’s motto has always been that dictionary is the only place where success comes before work.

There are many reasons why America is a superpower and the greatest country in the world. Americans know how to innovate, how to lead, how to share and know how to inspire. They also know how to spot a good talent, recognize it and train that person well. When it comes to their security, they know how to pick the best navy seals and train them. This year, American’s demonstrated that they are also capable of making the best managers in the world and picked an Albanian for the Manager of the Year. Only in America sky is the limit and Albanians are making great use of that in many fields.

Comments from Wall Street – Gold Standard

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By Nick Markola, CIMA®/

For centuries, long before the beginning of the recorded history, gold has been a sought-after precious metal for coinage, jewelry, and other arts. According to the Wikipedia definition, gold is a dense, soft, shiny, malleable, and ductile metal. It is a chemical element with the symbol Au and atomic number 79. In Latin Aurum means glow of sunrise. Others believe that it means shining dawn or glowing dawn. While true origin of the name or its factual meaning can be debated, the fact that gold has made a permanent place in some investor portfolios, or holdings of Central Banks globally isn’t for much debate. Some investors have had gold in the portfolios for a long time but it appears as if the media coverage of gold has increased since the Great Recession of 2008 and early 2009. More recently, in the past few weeks, after years of steady positive returns, gold experienced a price decline not seen in the past 30 years. The double digit price decline left investors asking, is this a time to totally get out of gold, stay on the sidelines or buy.

Over the centuries, gold has been used for monetary exchange. Entries in Wikipedia explain that this was done either by issuance and recognition of gold coins or through gold convertible paper instruments by establishing gold standards in which the total value of issued money is represented in a store of gold reserves. The first gold coins of the Grecian age were struck around 700 BC. European economies re-established the minting of gold as coinage during the thirteenth and fourteenth centuries. In fact, at the beginning of World War I, the warring nations, in order to inflate their currencies and finance the war, moved to a fractional gold standard. It was not until after World War II that gold was replaced by a system of convertible currency. This was done after the Bretton Woods Conference at Bretton Woods in New Hampshire in July of 1944.

For a long time, gold has been used as an investment, however storing it for investment purposes is a challenge. Many holders of gold store it in the form of a bullion (the word bullion originates from Frecnh which meant “boiling” or melting house) coins or bars. Typically, investors hold gold as a hedge against inflation or other market declines and economic disruptions. Gold is also widely used in jewelry. This is the part that many Albanians know well, especially the young brides. As we know, in some parts, the family’s worth or status is measured by how much gold jewelry they lavish on a bride. For all the young grooms and their families, there was some good news around the 15th of this month. After rising six fold in the past 12 years, (yes, that is correct, gold rose six fold in the past 12 years) gold prices plunged 9.1% on April 15, 2013. This was the largest the largest drop in gold prices since 1983. Now the grooms and their families can save some money, with lower gold prices, in their quest to impress the bride, her family and all onlookers. Gold prices peaked and reached the all time high of $1,921.15 an ounce in September 2011. Last week, the yellow metal tumbled to its 26-month low price of $1,347.95. This is an approximately 30% drop in the price of gold from its peak, thus making it all more affordable for the young Albanian grooms to lavish and shower their brides with gold jewelry.

Many investors are scrambling how to interpret the recent decline in gold prices and are asking whether this is a good entry point or should they wait longer. Others that had not ventured in the yellow metal may have more questions about the recent price decline. One of the questions that may be on many investors and potential investors’ minds is what triggered the decline in gold prices recently. We all know that gold is a precious metal with a limited supply. According to GFMS Ltd. an independent precious metals consultant specializing in gold and based in London, only a 171,300 tons of gold have been mined in the entire human history. Gold supplies furthermore are limited and finite.  The answer to the above question appears to be Cyprus. Cyprus was in the news in the past few months after they needed a financial bailout and depositors in their largest bank sustained large losses. There were subsequent reports The Central Bank of Cyprus may have to sell its gold reserves as part of the conditions to Europe’s bailout of the island. It appears that some investors may have been nervous that such a move would push the gold prices down and they did not want to take a possible hit. Some believe that this led to a rush for the exit and a chain reaction that followed probably lead to the biggest drop in gold prices in 30 years. The end result was an approximately 30% price decline in gold from its peak in September 2011. Many Central Banks took a hit as the value of their gold reserves declined significantly. For example the Reserve Bank of India saw the value of its gold reserves drop from $34 billion in September 2011 to $24 billion last week.

It remains to be seen where gold prices go from current levels. Baron’s reported that last week, hedge funds reduced by 8.2% their bets on lower gold prices, while they left the same their bets on a rally in gold prices. Some Central Banks have been vocal to argue that the drop in gold prices is a buying opportunity. However, it remains to be seen if they are putting their money where their mouth is, or whether they are just looking to support an increase in price of gold via their comments so the value of their gold reserves increases too. In any event, gold could be a diversifier in some investment portfolios. Doing your homework is key and the most important step. It is more important than playing the dangerous game of trying to predict prices. Before deciding whether you are a long term investor in gold, or just a speculator, take the time to do exhaustive homework. Who knows, the result may just surprise you.

* The writer is the Co-Founder of APEN and the President of Vatra Westchester Branch

Vatra Westchester Activities

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In terms of other events in the community, the following is the list that we are supporting or sponsoring as a chapter. For more info, please contact me or the person next to the event 1 – May 19, 2013 – Albanian Roots picnic – Queensbridge Park, Queens, NY (contact Ervin Toro ervin.toro@gmail.com or Marko Kepi markokepi@gmail.com) 2 – May 25, 2013 – Musical and Literary Evening our sister branch in Jacksonville, FL is organizing – Holiday Inn, Jacksonville, FL (contact me for more details – a trip to Florida is always nice, especially in May) 3 – May 26, 2013 – Ana e Malit annual picnis – FDR Park, Yorktown Heights, NY (Ismet Kurti ikurti@msn.com or Naser Cobaj cobajn@aol.com) 4 – May 30, 2019 – APEN Investment Conference – Barclays Capital HQ, New York City (Contact me for more details) 5 – May 31 – June 2, 2013 – Albanian Festival – St. Mary’s Albanian Church, Worcester, MA 6 – June 2, 2013 – Albanian Heritage Day – Kensico Damn Plaza, Valhalla, NY (Elza Lulaj ulaj@gmail.com) 7 – June 8, 2013 – Waterbury Albanian Annual Festival – Waterbury, CT (Deni Blloshmi dblloshmi@gmail.com) 8 – June 22, 2013 – Albanian Parade via Albanian Roots – New York City. We are looking for a sponsorship to raise money for own float. (Ervin Toro ervin.toro@gmail.com or Marko Kepi markokepi@gmail.com) 9 – June 29, 2013- MAASBESA Annual Boston Boat Cruise – Boston MA (Mark Kosmo markkosmo1@gmail – Summer evening outdoors on a cruise in Boston is hard to beat) Thanks and let’s support the above events individually or as a group. Don’t hesitate to reach out to the contact person or myself with any questions.(Nick Markola)

Foto:Nga takimi i bordit te deges me kryetarin e Vatres, dr. Gjon Bucaj te shtunen me 18 maj 2013

2013 Going back to our roots (Europe)

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By Nick Markola CIMA®

2012 turned out to be a lot better than most predicted this time last year. We are grateful the Mayan’s and their calendar skills were subpar.

2012 was a centennial year for Albanians with global commemorations and many great events. Centennial events reminded us all of our rich history, great accomplishments, of centuries of all struggles and victories and of our European roots. We should always celebrate our rich history and traditions, but always remember that we need to work hard and smart to achieve even more in the future. Each one of us should give our contribution. In my view, it is important for all of us to invest wisely, create a strong society of successful investors in various fields globally, starting from the United States to Europe and as far as Australia. Having strong investor portfolios on individual basis provides for our families. It further provides for the common good and gives us all more leverage. As 2012 is winding down, taking a closer look at our portfolios and positioning them for 2012 is prudent. Europe, despite all of its woes, maybe a good place to consider investing. Exploring going back to our roots, going back to Europe, always makes sense.

In positioning investment portfolios for the coming year, Wall Street professionals and investors are looking across the globe. There are walls of worries about the Fiscal Cliff and deficits in the US, sovereign debt in Europe, soft or hard landing in China, commodity crisis in Latin America and the nuclear issues in the Middle East, just to name a few. However, there are also investment opportunities throughout the world investors can capitalize on despite the challenges. Europe has been in the news extensively. Images of rioting folks in Greece or workers demonstrating in Italy, France or Spain may be fresh in our minds. There are arguments that Europe has entered into a depression and that may lead some to argue why considering investing in an area, in or on the brink of depression may profitable. They may argue for investments in economies that are growing at healthy rates.

For starters, it is very important to draw a clear distinction and delineation between economies and stock markets. While the performance of economies and markets may coincide during some periods, it is crucial to understand that often their performance diverges and goes in opposite direction. In support of this, one should look at the US in 2012. GDP growth has been anemic, but the equity markets have been very strong, returning well over 10%. China’s growth in the past has been very strong but equity markets have not. Brazil’s economy has grown at attractive rates but the equity market has not behaved the same. If one needs more evidence to understand that economic growth and stock market performance don’t behave the same way, a look at Europe in 2012 is a case in point. The European economy put up negative growth, while equity markets across Germany, France and UK were up in double digits with the Pan European Stoxx Europe 600 Index up almost 20%.

Debt crisis is still raging in Europe and some of the European governments are in very difficult financial situation. However, some European companies, unlike their government, are in much better financial position and flush with cash. Barron’s reports that companies in the Stoxx Europe 600 Index, had approximately €600 billion ($800 billion) in cash at the end of 2011, substantial increase from the €540 billion at the end of 2007, according to data from Thompson Reuters Eikon. Approximately a third of the companies in the index are currently debt free which means that they have plenty of cash on the sidelines waiting to be deployed. Corporate earnings are further forecasted to rise by 5% to 10% in 2013.   Price to earnings multiples, a frequently used measure to analyze investments, have significantly improved in 2012 for European companies. The real catalyst for such an improvement may be the actions of the European Central Bank (ECB). The ECB tried on numerous occasions in the past to deal with the crisis but not with much access. Over the summer, it appears that the markets were encouraged with the actions and comments of the ECB President Mario Draghi that they will spare no measure and will do everything possible to deal with the European debt crisis. The July 2012 pledge by Mr. Draghi that they will do “whatever it takes” appears to have soothed the market participants in Europe.

With the negative news out of Europe and with the recession then potential depression, many European companies have suffered. There are still risks in Europe, especially on the political side. Political risks have somehow diminished but Greece is still a mess. Italy has significant issues to deal with, and Spain and Portugal are on the brink of needing rescue packages. France also has real issues. There has been a lot of chatter about austerity measures in Europe, however, a closer look at government budges reveals anything but austerity as expenses aren’t reined in while spending has increased. The US has seen real issues in getting just two political parties to agree on anything meaningful. Therefore, getting all the European governments to agree on anything meaningful is a challenge.

One of the important tenets of investing is that one should always look for good investments. A more important tenet is to look for good investments in bad places because most will shy away difficult environments. Europe may be considered anything but a good investment place for many, but it is where our roots are. Going back to our roots always makes sense. Some of the companies in Europe I am contemplating on taking a closer look at are the German chemicals producer, Bayer; Swiss luxury goods maker Richemont; Danish drug maker, Novo Nordisk or the Spanish utility Enagas. Investing in stocks is always risky. Taking a closer look at companies in places such as Europe which is going through challenging times from an economic standpoint may provide attractive opportunities in 2013. It will provide an opportunity to go back to our roots and possibly generate attractive returns in this turbulent world.

With best wishes for a wonderful Holiday Season and a happy, healthy and prosperous New Year, be well and invest wisely.

* The writer is the Co-Founder of APEN