Europe - Stocks (General News)

[winston]

The Absolute Best Way to Buy European Stocks By Dr. Steve Sjuggerud

"We have prolonged banks' access to unlimited liquidity up to the end of 2016," Mario Draghi, the European Central Bank (ECB) President, said over the weekend.

My friend, Mario Draghi, and the ECB have shown us their cards. They're following squarely in the U.S.' footsteps. They're going to do everything they can to devalue their currency and inflate asset prices.

Last week, I explained why Draghi is giving us a great opportunity to short the euro. But we have an even better opportunity in European stocks, right now.

You see, Draghi's negative interest rate and easy-money policies will have two major side effects…
1. A weaker euro.
2. Significantly higher stock prices in Europe.

Today, we have a simple way to make both of these bets, in a single, simple investment. It's the absolute BEST way to invest in Europe today. Let me explain…

In the U.S., I've said we're in about the seventh inning of this great Bernanke Asset Bubble. I expect stocks in the U.S. can still go higher… but it's getting late in the game.

However, in Europe, we are probably closer to the fourth inning of the "Draghi Asset Bubble." So there's a lot left to go in the game. The chart below shows what I mean…

As you can see, the U.S. has broken out to new all-time highs in the past year. Yet, European blue chips have been nearly flat since 2005… and remain 32% below their pre-crisis highs.

Because of this, Europe offers a better opportunity than the U.S. right now. Buying Europe today is a lot like buying U.S. stocks two years ago.

Draghi is just entering crisis mode now. He has cut interest rates to negative levels and has said over and over that he's willing to do just about anything to boost Europe's economy.

His stimulus efforts should continue pumping up stock prices in Europe AND decreasing the value of the euro in the process.

One simple investment will give us all of the upside of European stocks… but protection from any falls in the euro… the WisdomTree Europe Hedged Equity Fund (HEDJ).

Importantly, HEDJ eliminates our currency risk. So if the euro falls by 10% or 20%, it won't make a difference to HEDJ. This is a key feature of this fund.

Longtime readers will remember we saw a similar setup in Japan in 2012…

In my True Wealth newsletter, we bought shares of the WisdomTree Japan Hedged Equity Fund (DXJ). DXJ is just like HEDJ, but in Japan. It was the first time I'd bought a fund like this… It worked out fantastically…

Japanese stocks soared nearly 50% five months after we bought, and the yen crashed by nearly 20% in the same time period. We enjoyed all those gains in stocks, and missed out on all those losses in Japan's currency. The fund worked exactly as advertised.

Today, we expect the same outcome in Europe. We expect…
1. The euro to fall.
2. European stocks to soar.

Shares of HEDJ give us an opportunity to profit from both of these outcomes.

In short, Europe looks a lot like the U.S. did a couple years ago.

It hasn't broken out to new highs yet. And its central bankers are finally in panic mode, willing to crush the currency. A weaker euro will improve corporate profits, further helping European stock prices.

Our opportunity is great. Don't miss shares of HEDJ today.

Source: www.dailywealth.com

[winston]

These two global markets say it could be 2007 all over again by Chris Kimble

CLICK ON CHART TO ENLARGE

London (FTSE 100) and France (CAC 40) broke steep support lines back in 2000-2001 and 2007, and proceeded to fall hard.

The FTSE is back at the 2000 & 2007 levels at this time and the CAC 40 is weaker, creating so far, lower highs in 2007 and now, compared with the high in 2000.

Both are testing steep support lines at (1) in the charts above.

Joe Friday… Keep a close eye on these two key European indexes, to see how they handle this steep support line in the next few weeks.

Source: Kimble Charting Solutions

http://thecrux.com/forget-the-u-s-these ... ver-again/

[winston]

Europe's uptrend is looking shaky… European stock fund FEZ sinks to its lowest level since March.

[winston]

Europe's stock uptrend is looking shaky… big European stock fund FEZ sinks to a four-month low.

[behappyalways]

Banco Espirito Santo woes reignite eurozone fears as shares drop 80pc in two days
http://www.telegraph.co.uk/finance/news ... -days.html

[winston]

One Country Primed to Soar in the Draghi Asset Bubble By Brett Eversole

The Draghi Asset Bubble is here…

As regular DailyWealth readers know, we've been telling you about the opportunity in European stocks for more than two years… and about what my colleague Steve Sjuggerud has coined the "Draghi Asset Bubble" since last December.

In short, European Central Bank President Mario Draghi is cutting interest rates across the board. He also just announced plans to buy private-sector assets… a similar plan to the massive quantitative easing (QE) we've seen in the U.S.

All of this points to one thing… higher European stock prices.

But there's one European country that looks especially attractive to us right now…

This country has a rare, but profitable setup in place today. And history shows it'll likely lead to a quick double-digit bounce in prices.

Let me explain…

The big winner in Europe could be Italy…

That might surprise you. After all, Italy has been one of the weaker European economies since the 2008-2009 global financial crisis.

The country posted -0.3% gross domestic product (GDP) in the second quarter… its 11th negative reading in a row.

But bad headlines and a weak economy are actually a good thing today. The reason is simple… the bad news has forced investors out. No one is interested. And based on history, that gives us a safe opportunity to profit.

We can see this negative sentiment by looking at the shares outstanding of the major Italy exchange-traded fund (ETF) – the iShares MSCI Italy Fund (EWI).

Exchange-traded funds like EWI create and liquidate shares based on demand. The total shares outstanding fluctuate depending on whether more investors are buying or selling.

When shares outstanding fall, it means investors aren't interested. And that's exactly what we're seeing today…

Shares outstanding of EWI are down 20% over the last month… Historically, that gives us a great chance to profit.

You see, 20%-plus falls in shares outstanding don't happen often. In the case of EWI, it has only occurred four other times since 2010. And buying after these declines led to quick gains. Take a look…

iShares MSCI Italy Fund (EWI)
Investors lose interest Stocks Peak Time (in months) Return
5/19/2010 8/3/2010 2.5 18.3%
10/25/2010 11/4/2010 0.3 2.8%
1/6/2011 4/29/2011 3.7 24.6%
11/2/2011 3/19/2012 4.5 10.5%
Average 2.6% 13.1%

As you can see, buying after a 20%-plus fall in EWI shares outstanding led to 13% gains over the next 2.6 months, on average.

Shares of EWI crashed nearly 20% in June and July, sparking this massive shares-outstanding decline. But EWI is already recovering. The fund is up 8% in the last few weeks. But shares outstanding haven't turned around yet.

That shows that we still have plenty of upside left… And we have what could be a new uptrend on our side. But it's a little too early to tell.

Mario Draghi is doing everything he can to boost stock prices in Europe. With investors fleeing, but prices beginning to move higher, history shows Italy could be the big winner.

It's a bet worth considering today.

Source: Daily Wealth

[behappyalways]

Europe heading lower: EFA breaks support.
https://www.facebook.com/bartonsglobal

[winston]

European stocks shift back into a downtrend… European stock fund FEZ touches its lowest level in nearly a year.

[winston]

Europe's struggling economy takes its toll… Germany and France country funds EWG and EWQ break down to 52-week lows.

[winston]

European stocks fall… European stock fund FEZ hits a new 52-week low as investors worry about a new recession in Europe.