Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
VR and Gaming Becomes the Metaverse - 7th Dec 21
How to Read Your Smart Meter - Economy 7, Day and Night Rate Readings SMETS2 EDF - 7th Dec 21
For Profit or for Loss: 4 Tips for Selling ASX Shares - 7th Dec 21
INTEL Bargain Teck Stocks Trading at 15.5% Discount Sale - 7th Dec 21
US Bonds Yield Curve is not currently an inflationist’s friend - 7th Dec 21
Omicron COVID Variant-Possible Strong Stock Market INDU & TRAN Rally - 7th Dec 21
The New Tech That Could Take Tesla To $2 Trillion - 7th Dec 21
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

One of the Best Opportunities When the Stock Market Recovers

Stock-Markets / Stock Markets 2015 Sep 08, 2015 - 05:14 PM GMT

By: DailyWealth

Stock-Markets

Dr. Steve Sjuggerud writes: It's a scary time to buy stocks...
 
Markets around the world are breaking down. But as we've written recently (here and here), this volatility is likely overdone. And it's creating real opportunities.
 
Most investors are focused on the U.S. today. But one of the biggest opportunities isn't at home... It's in Europe.

 
Let me explain...
 
Yes, stocks have been volatile, and we have hit some stop losses... But looking at the bigger picture, European stocks are a fantastic opportunity – an even better one than U.S. stocks.
 
U.S. stocks have gone up for six straight years. And they're only down 4% in 2015 after the recent fall. European stocks haven't gone up nearly as much...
 
Europe's major blue-chip index – the Euro STOXX 50 Index – was up in just three of the last six years. And it's down again this year. Take a look...
 

The S&P 500 is up around 65% over the past decade (not including dividends). The Euro STOXX 50 Index is down 8% over the decade (not including dividends and in U.S. dollar terms).
 
This incredible divergence in performance has made Europe's stock market cheap. Take a look...
 
 
Price-to-Book
Price-to-Sales
Div. Yield
S&P 500
2.6
1.7
2.2%
Euro STOXX 50
1.4
0.9
3.8%
Discount
-46%
-47%
-42%

European stocks are more than 40% cheaper than U.S. stocks when you look at some major value metrics, including price-to-book, price-to-sales, and dividend yield.
 
Looking back over 30 years of historical data, whenever European stocks were 40%-plus cheaper than U.S. stocks, European stocks outperformed U.S. stocks over the next year, three years, and five years.
 
In short, we want to own European stocks when the uptrend returns. The eurozone economy is the world's largest... and yet its stock market is an incredible deal relative to U.S. stocks.
 
When I look at Europe today, I see the U.S. a few years ago...
 
Here in the U.S., unemployment is down, stocks are up, and the economy is slowly ticking higher. Because of that, we're on the verge of higher interest rates from the Federal Reserve. But not in Europe...
 
Earlier this year, European Central Bank President Mario Draghi put Europe's own quantitative easing (QE) program into place. Europe's central bank is just now starting the money-printing process in hopes of igniting the area's economy.
 
Of course, this will lead to increases in asset prices, like we saw happen in the U.S.
 
Europe's stock and property markets will likely soar in response to this program. And higher interest rates won't appear in Europe for years.
 
European stocks should be a fantastic opportunity, particularly when the uptrend returns.
 
Good investing,
 
Steve

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Daily Wealth Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in