We continue to maintain a bullish stance towards European stocks for 2006. The combination of still low valuations and the prospects that earnings will continue to grow suggests a continued positive stance.

These stocks historically have price-to-earnings ratios in the high teens to low 20s, an I expect they'll return to that level.

Our stance is to maintain peace and stability, and to reach settlement through dialogue,

What I would like to see is the European Commission taking a more proactive stance instead of a wait-and-see approach.

It was a combination of long liquidation and fund selling. We do see rising copper stocks and that is some of the impetus behind the recent pressure.

Earnings growth has been surprisingly low for drug stocks and there is more of that to come as we go through a cycle of patent expirations. But I think the stocks are close to being washed out and if you have patience they will do quite well over a longer period of time.