InvestIdeas

Why I'm buying this breakout market today

Source: Daily Crux

http://thecrux.com/sjuggerud-why-im-buy ... ket-today/

These Stocks Are Breaking Out

By Brett Eversole

You can buy Spanish stocks today at 1998 prices…

That’s crazy, right? It’s rare to see an asset trading for the same price it was 20 years ago. But that’s the reality in Spanish stocks right now.

The iShares MSCI Spain Capped Fund (EWP) broke out to a new 52-week high earlier this month.

Source: Daily Trade Alert

http://dailytradealert.com/2017/03/31/t ... ing-out-4/

Brexit

If no agreement is reached in two years, and no extension is unanimously agreed to, the UK automatically leaves the EU and all existing agreements - including access to the single market – on Friday, March 29, 2019.

Expect to see some bitter negotiating between now and then.

For investors, this two-year charade will likely mean an added layer to the already uncertain future of the European Union, particularly given some of the key upcoming elections.

We would think there’s not a whole lot of good reason to overweight Europe right now, particularly financial institutions there.

We would urge investors to review the foreign allocations in their portfolios, and adjust where necessary.

Source: Zack's

Barry Ritholtz
Chairman and chief investment officer, Ritholtz Wealth Management

Hold Your Nose and Buy Europe

Pity U.S. investors who have put capital into Europe for the past 10 years. Including reinvested dividends, they have almost nothing to show for their European vacation.

Have a look at two funds that focus on Europe: Vanguard’s FTSE Europe ETF (VGK) and the SPDR EURO STOXX 50 ETF (FEZ). The big difference between the two is that FEZ doesn't have United Kingdom exposure, while VGK is about 30 percent U.K. stocks.

That’s a distinction without a difference. Each of these funds has been going nowhere for a decade. Before reinvesting dividends, VGK is down 27.3 percent through the end of March. Even with dividends reinvested, the returns were less than 1 percent annually (9.8 percent). FEZ did even worse. It's down 34.7 percent over the decade; dividends change that number to a negative 5.5 percent. Ouch!

Had you invested in the S&P 500 over the past decade, you would have doubled your money, with a 105 percent return. That’s 7.5 percent per year. The last time there was this big a performance gap between Europe and the U.S. was in the 10 years ended in 2002. (Over the ensuing 10 years, European stocks, measured by the MSCI Europe index, gained 69 percent, significantly outperforming the S&P 500.)

But the premium that U.S. stocks have earned has stretched their valuations somewhat. Value investors should hold their noses and buy into the Continent. It may sound like a terrible idea, but that’s a hallmark of a good contrarian concept. It's a particularly good idea for those who succumb to home country bias and are overexposed to the U.S. stock market.

Consider how inexpensive Europe is relative to the Shiller CAPE, the cyclically adjusted price/earnings ratio, for U.S. stocks, at about 30. The CAPE of developed Europe is 16.6, and the CAPE of emerging Europe is 8.6. Value investors should note that eight of the 10 cheapest countries in the world are in Europe.

Ways to play it with ETFs: Bloomberg Intelligence's ETF analyst, Eric Balchunas, likes both of Ritholtz's picks, the Vanguard FTSE Europe ETF (VGK; it has a 0.10 percent fee) and the SPDR EURO STOXX 50 ETF (FEZ; the fee is 0.29 percent).

Source: Bloomberg

Investors cheer as Macron emerges as favorite to lead France
http://money.cnn.com/2017/04/23/investi ... plead-intl

Europe pops. This is a Eurostoxx50 etf.
https://www.facebook.com/bartonsglobal/

Fed Up With U.S. Markets? Give Europe a Try

By John Persinos

The euro zone is the economic and monetary union of 19 of the 28 European states that have adopted the euro as their common currency.

Collectively, the euro zone’s nominal gross domestic product (GDP) reached €10.7 (US$11.8) trillion in 2016, making it the second largest economy in the world if considered as a single country.

SPDR EURO STOXX 50 ETF (NYSE: FEZ).

With net assets of $2.78 billion and a low expense ratio of 0.29%, FEZ invests in the stocks of the largest companies across components of the 19 EURO STOXX “Supersector Indexes.”

FEZ’s top holdings include Daimler, Bayer (OTC: BAYRY), Siemens (OTC: SIEGY), Banco Santander (NYSE: SAN), Sanofi (NYSE: SNY), and SAP (NYSE: SAP). Year to date, FEZ has racked up a total return of 8.85%.

SPDR EURO STOXX 50 ETF (NYSE: FEZ)

With net assets of $2.78 billion and a low expense ratio of 0.29%, FEZ invests in the stocks of the largest companies across components of the 19 EURO STOXX “Supersector Indexes.”

FEZ’s top holdings include Daimler, Bayer (OTC: BAYRY), Siemens (OTC: SIEGY), Banco Santander (NYSE: SAN), Sanofi (NYSE: SNY), and SAP (NYSE: SAP).

Year to date, FEZ has racked up a total return of 8.85%.

Source: Investing Daily

http://www.thetradingreport.com/2017/05 ... ope-a-try/

Europe doing well: Euro breaks resistance, Eurostoxx booming.
https://www.facebook.com/bartonsglobal/

European stock funds gather momentum as inflows cross all-time record high of $6 billion
http://www.cnbc.com/2017/05/12/european ... trump.html

We’ve Uncovered a Major New Profit Opportunity

By Ashley Moore

Shah recommends the Direxion Daily European Financials Bear 1x Shares ETF (NYSE Arca: EUFS) to short the banks in the Eurozone. The fund is set up to gain the same amount that the European Financials Index loses in a day.

To short the euro, Shah recommends the ProShares Ultrashort Euro ETF (NYSE Arca: EUO). The goal of this fund is to gain twice the daily losses of the euro. If the euro declines by 5%, you stand to make 10%. Both will allow you to profit from the uncertainty in the Eurozone.

The Bottom Line: While some investors are panicking after this week’s Greek debt news, that’s the worst thing you can do. Even though they did not get a deal yesterday, they will eventually get one. Until that happens, take advantage of the dip and profit from the euro and Eurozone banks.

Source: Money Morning

http://dailytradealert.com/2017/05/24/w ... portunity/