“Many investors are concerned about the impact of Europe’s debt crisis on the U.S. stock market. Just this past Wednesday, the Standard & Poor’s 500 Index plunged 3.7 percent on Italian bond fears, just the latest in many fluctuations stemming from news out of the troubled eurozone.
But Bob Pavlik, chief market strategist at Banyan Partners, says Europe won’t have much of an impact on the U.S. market beyond the short term.
Looking longer-term, “think about all the other countries that have defaulted on their sovereign debt and how much of a lasting impact that had on the worldwide economy,” he tells Yahoo.
“I think this is going to be the same situation. It’s just that we have a few more of them going on at the same time.”
That’s not to say that coming weakness in European economies doesn’t matter. “But I’m looking out three to five years down the road,” Pavlik says. “That’s how I’m investing my clients’ money.”
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