Central banks throw the euro a life raft ... how you can profit

I wrote this in Money and Markets on January 14 regarding my outlook for the euro:

"Its only saving grace would be a rising tide of risk appetite."

My idea that the euro would rally was based on its sell-off being a bit overextended and expectations it (and other assets) would play catch up to stocks. So far that has worked according to plan ...

The euro has risen 3.8 percent against the dollar since January 14 — a rather large move if you're playing the forex market. But technical and sentiment reasons are not all that's moving the euro now.

A focus on money printing and central bank policy has become a life raft for pushing the euro higher. And that is going to continue — not only because the European Central Bank is working overtime to save the euro zone, but because its counterparts are also complicit in this game to keep interest rates down and credit lines open.

Let's go over the four main players, starting with the ...

The Next 2 Emerging Markets Set to Outperform (and the Specific Sectors to Watch)

Many of the best emerging-value dividend plays today are traded on the U.S. exchanges. That's not just my opinion — my proprietary indicators are clearly telling me that's the case.

In my latest scan of nearly 300 emerging-market stocks — the ones I'm tracking most closely in both the United States and on overseas exchanges — what I'm seeing across the board is that the best way to get exposure to emerging economies and their accompanying growth stories is to start right here at home.

Split between "Real" and "Asset" Economies Never More Clear Than Now

Many average investors like to think that the performance of the STOCK market is closely tied to the underlying ECONOMY. And in most normal times, that's true. But the current market environment is anything but normal.

I say that because we're in the midst of yet another round of money-printing-driven action. The fingerprints are everywhere ...

Super-low volume rallies in stocks. Levitation in gold. A slump in the euro first, driven by the European Central Bank's backdoor money-printing LTRO program, followed by a slump in the dollar, driven by more dovish talk out of the U.S. Federal Reserve.

All these clues tell me that the "asset" economy is floating on a sea of liquidity ... for now. Meanwhile, the "real" economy is doing nowhere nearly as good. And that only proves my thesis, once again, that QE is completely ineffective at helping average people on the street find jobs or promoting real, healthy, sustainable economic growth.

But for Wall Street bankers, it means Party Time!