Europe - Stocks (General News)

[iam802]

UBS Reports 76% Drop in Quarterly Profit

http://www.bloomberg.com/news/2012-02-0 ... -loss.html

[winston]

Buy on Rumor, Sell on News ?

European stocks rise on Greek bailout hopes

European stock markets rose on Monday on growing signs that a new bailout for Greece could be finalised at last while sentiment got a boost by the latest Chinese move to ease credit.

In late morning deals, London's FTSE 100 gained 0.79 percent to 5,951.32 points, the Paris CAC 40 added 0.87 percent to 3,469.70 points and Frankfurt's DAX 30 rose 1.41 percent to 6,944.50.

The European single currency advanced to $1.3220 from $1.3141 in New York late on Friday, gaining ground as investors became more willing to take risks. US markets were shut for a public holiday on Monday.

"The key event today remains the meeting of EU finance ministers which reports have suggested could well see the ratification of the latest Greek bailout," said CMC Markets analyst Michael Hewson.

"The markets certainly think that the odds are good ... as the euro and (stocks) have continued to rise."

http://www.newsmeat.com/news/meat.php?a ... &buid=3281

[kennynah]

well...eur is up about 100 pips from where it last closed on fri last week

[winston]

I Haven't Bought Here in Two Decades… But Now It's Time By Dr. Steve Sjuggerud

I haven't bought a stock in Italy in two decades.

Honestly, I'd given up on Italy… I'd put it "out of sight, out of mind." I assumed I'd never invest there again.

But then I got a surprise on March 1…

Our True Wealth Systems computers say now is the best time in over 50 years to buy Italian stocks.

A buy signal? On Italy? Really?

Yes… something extraordinary is happening there… something that could lead to triple-digit gains in 18 months, based on history. And you can limit your downside risk to roughly 15% (the 2012 lows). I like those odds…

Today, Italian stocks are at the same level they were in 1986 – over a quarter-century ago – in U.S. dollar terms. For comparison… during the same time, the Dow Jones Industrials Index has gone from below 2,000 to around 13,000.

So why have Italian stocks done nothing? Because Italy has done nothing to grow…

For example, the unemployment rate among young people (under age 25) in Italy is now an astonishing 31%. The government makes it difficult for businesses to fire workers. And if it's difficult to fire someone, you're less likely to hire someone.

Things are terrible in Italy. But we don't need things to be great for us to make money…

All we need is for things to get "less bad" for a little while.

And that is happening right now in Italy… Thanks to Mario Monti…

Mario Monti is Italy's new leader. He was not elected… He was asked to step in when the Prime Minister stepped down in November. He's currently making major changes. And it turns out… the Italians – so far, at least – appreciate that he is trying to clean things up.

(Bloomberg News recently did an excellent two-minute video on what Monti is up to. It's critical you watch it to understand what's happening in Italy right now.)

Thanks to Monti, things are getting "less bad" in Italy (but nobody is paying attention). Italian stocks are record-cheap. And the uptrend has begun.

One way we gauge how cheap stocks are is their dividend yield. And right now, for the first time in over 30 years, Italian stocks are (legitimately) paying out near-5% dividends…

(I say "legitimately" because in 2009, the "official" dividend yield soared. But many companies ended up cutting their dividends. Investors didn't get to pocket that high yield.)

In 1979, 1985, 1993, and 2003, the dividend yield hit the mid-4% range – and each time, Italian stocks soared soon after:

But this time around is much better…

You see, back in 1980 when the dividend yield hit 5% in Italy, inflation was running near 20%, and interest rates on government bonds were around 20%. With inflation near 20%, a 5% dividend was worthless. Inflation is closer to 2% today.

Another traditional measure of value is the price-to-book ratio. By both measures, Italy is as cheap as it's been in nearly 20 years…

Unbelievably, as you can see above, Italian stocks trade at a significant discount to book value – the lowest ever in the 25 years of data we have. The story is similar on a price-to-earnings basis.

In both cases, Italy today is cheaper than it was in 1993 – the last time it was super-cheap. After bottoming back then, Italian stocks soared 116% in dollar terms in the following 19 months.

I expect we could see a triple-digit burst like that again…

Remember… things don't have to get good in Italy. That's not what we're expecting. Things just have to get less bad. And they are… Interest rates, for example, have fallen dramatically since Monti arrived.

The stock market hasn't soared… yet. But we do have a glimmer of an uptrend.

Based on risk versus potential reward, it's worth "taking a shot at it." The simplest way to play this idea is through the iShares Italy Fund (EWI).

I never would have even considered Italy if True Wealth Systems hadn't alerted me to it… But True Wealth Systems is exactly right: Italy has all the ingredients – it's cheap, hated, and has the start of an uptrend.


www.dailywealth.com

[winston]

THE BIGGEST COMEBACK STORY OF THE YEAR by Jeff Clark

One month ago, we challenged readers with a question… Is Greece better off today than it was four months ago?

We may have our answer… Yesterday, the Greek stock market challenged its high for the year.

The Athens General Share Index (ATG) is now 22% higher than where it started 2012. And it's up 73% since bottoming just four months ago.

The financial press might write headlines about a crushing debt load, 60% unemployment, and rioting in the streets. But when it comes to Greece, this chart might be the biggest story of the year…


Source: Daily Wealth

[winston]

Europe's biggest economies are all in recovery mode… fresh 52-week highs for Germany, the U.K., France, and Switzerland.

[winston]

The stockmarket of Greece was up 32%, while the "experts" on TV were frightening you about a European Contagion.

Roubini, Edwards, Rosenberg, Shilling - where are u ?

[winston]

European Underperformance Continues by JC Parets

After a decade of underperformance, I guess we shouldn’t be surprised that European stocks keep struggling when compared to the United States.

But I think it is worth noting that even after the monster rally in Europe during the second half of last year, the downtrend relative to the US got going again to start 2013.

http://allstarcharts.com/european-under ... continues/

[winston]

THE LATEST PROOF OF THE GLOBAL BERNANKE ASSET BUBBLE

European stocks are booming… even though Europe's economy is stuck in neutral.

Over the years, Steve has detailed how the Fed's commitment to keeping interest rates low has driven U.S. asset prices higher. Stocks and real estate have soared. And last year, the Bernanke Asset Bubble became a global event.

Today, asset prices are soaring in one of the most "unlikely" places – Europe. Europe's economy is in shambles. The 17-nation eurozone is on track for its second straight year of negative GDP growth.

And unemployment rates are still stuck above 25% in many countries. But investors don't seem to care. Money is flowing into Europe, driving up stock prices.

For proof, we look at the SPDR Euro Stoxx 50 Fund (FEZ). FEZ consists of the largest multi-national blue-chip companies in Europe. And last week, it touched its highest level in two years.

Despite Europe's crummy economy, its stock prices are in a big uptrend… It's the latest proof the Bernanke Asset Bubble has gone global.


Source: www.dailywealth.com

[winston]

The World's Best-Performing Markets Are Still a Buy By Brett Eversole
Monday, November 11, 2013

Three markets are up 40%, 27%, and 26% in just a little over four months.

But almost nobody has noticed…

It's a classic "bad to less bad" situation… an opportunity where things are slowly improving…

"Bad to less bad" might not sound like much – but it is where investors can make some of the biggest gains investing.

Our opportunity is in some of Europe's most out-of-favor countries – Greece, Italy, and Spain. Remember, to make money here, these markets don't have to get "good" – they just have to get "less bad." And that is starting to happen now.

I first wrote about investing in European stocks last year. Since then, the "Dow Jones of Europe" fund I recommended is up 42%… handily outperforming the S&P 500's 33% gains.

But you haven't missed this "bad to less bad" opportunity across the pond…

You see, even after their big moves, these stock markets are still cheap!

Today, you can buy Greece, Italy, and Spain at 38%, 29%, and 27% discounts to their 10-year average book value. Take a look…

These countries trade for an average price-to-book value of around 1.1 today. That's dirt-cheap. For perspective, European blue chips trade for a 30% premium to that price, and U.S. stocks are more than twice as expensive.

So while all three of these countries have hit multiyear highs, they are still incredibly cheap – well below their pre-financial-crisis highs.

In short, we've got a group of cheap, beaten-down stock markets. The average investor has given up on them. But now, for the first time in years, they're soaring. And they still have plenty of room to run.

You see, things are getting "less bad" in Europe. The continent as a whole is slowly pulling itself out of a multiyear recession. And while Europe still has a lot of long-term structural issues (with big debt loads, rigid labor laws, and chronically high unemployment, to name a few), investors are just starting to warm up to the idea of taking on risk in Europe.

It is truly a "bad to less bad" situation. And the "worst of worst" countries are now providing the biggest gains.

The idea of buying European blue chips last year was difficult for most people to swallow. But it was the right call… the fund I recommended soared by 42%.

Now, we have a new "bad to less bad" opportunity in Europe's "worst" countries – with a much higher potential return.

I know it's scary to think about, but that's what makes this such a great opportunity.

Greece, Spain, and Italy are cheap and hated… and they've just started an uptrend. Things are going from bad to less bad.

Now is the time to jump in.


Source: Growth Stock Wire