How things have changed. Back in October, the euro was an international basket case, worth just 82 cents against the dollar. American exporters watched their Continental markets shrivel as European consumers saw the prices of U.S. goods soar. Now, as the U.S. economy sags and American interest rates fall, the European economy is stabilizing, and the newly minted European currency suddenly looks a lot healthier. These days, it's trading at around 93 cents on the dollar, with some analysts predicting 100 cents by summer.
Many analysts say yes, at least for the next few months.
If Parsons is right, investments in Europe can be used as a hedge against struggling equities in the U.S. and Japan. All the same, a European play is no lock. The euro has had trouble pushing past the 96-cent mark, though its lows are staying above 92 cents or 93 cents, notes Lisa Conte, currency analyst at Prudential Securities. But she doesn't expect parity to last long. The Fed will be key to investors' decisions, both in the U.S. and in Europe.