Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search
Home About Us Resources Archive Free Reports Market Window

A Safe 53% Upside Opportunity

By Brett Eversole
Monday, March 24, 2014

Most Americans have no idea what is going on in Europe...
 
Many probably can't even name Germany's capital city... and Germany is the fourth most powerful economy in the world (behind the U.S., China, and Japan).
 
So most Americans certainly aren't aware of what's been happening in Germany's financial markets.
 
But it's time to pay attention...
 
In short, investors have turned on Germany. But they're making a mistake... and giving us an incredible opportunity in the process.
 
Today, stepping in to buy could lead to 53% gains by 2015. And we have a simple and safe way to make the trade.
 
Let me explain...
 
While most folks don't know what's going on Europe, they do know one thing... Germany is the economic engine of the European Union.
 
A devastating recession, high unemployment, and countless bailouts have plagued Europe over the last few years. Germany stood throughout the wreckage as the glue holding the European Union together.
 
Of course, this isn't surprising when you consider the economic position Germany has been in...
 
While unemployment in places like Spain peaked at over 27%, Germany's economy remained stable. In fact, Germany's unemployment rate was lower than that of the U.S. during the financial crisis.
 
And while many European economies are still below pre-crisis levels, Germany's GDP continues to reach new highs.
 
But you wouldn't know these good things are going on by looking at Germany's stock market...
 
You see, we should expect Germany's solid economic position to show up in stock prices. Investors should bid German stocks to much higher prices than others around Europe. But surprisingly, that isn't happening. The table below shows what I mean...
 
Country
2014 P/E
2015 P/E
Price to Sales
U.K.
13.2
12.1
1.0
France
13.3
11.8
0.9
Spain
15.3
12.8
1.0
Italy
14.7
11.8
0.6
Germany
12.8
11.3
0.8

As you can see, Germany actually trades at a discount to other major European stock markets based on this year's and next year's earnings. And only Italy is cheaper than Germany when you look at sales.
 
In short, Germany offers the most safety in Europe. It is the European Union's strongest nation, both economically and politically. Yet, we can buy German stocks at a discount to most of Europe. That's crazy!
 
Of course, this shouldn't happen. Investors should bid up the price of German stocks. And I believe they will over the next few years.
 
You see, German companies trading on the stock market are expected to grow earnings by 53% through the end of 2015. This growth should translate directly into stock market gains as investors realize the incredible value in Germany.
 
If things really get going – and investors bid up prices to capitalize on Germany's strength – we could see ever-larger gains.
 
Today, you can easily position yourself to profit with the iShares MSCI Germany Fund (EWG). This simple fund holds a basket of Germany's largest companies. And it's the easiest way to make the big-picture investment. (This fund is a recommendation in our True Wealth newsletter.)
 
Investors in general have given up on Germany. Meanwhile, we can buy today – for a lower price than most of Europe – and set ourselves up for 53% gains through 2015.
 
Don't miss this opportunity.
 
Good investing,
 
Brett Eversole




Further Reading:

Steve says U.S. stocks have soared in recent years, but European stocks are still at 2009 prices. Meanwhile, Europe's biggest blue-chip companies are DIRT-CHEAP. Find the best way to buy these companies right here.
 
What's the best way to make money in foreign markets today? Steve has found one fund that easily lets you put money to work outside the U.S... beat the market... and deal with less volatility. Get all the details here.

Market Notes


NEW HIGHS OF NOTE LAST WEEK
 
Bank of America (BAC)… bank
JPMorgan Chase (JPM)… bank
PNC Financial (PNC)… bank
M&T Bank (MTB)… bank
BB&T (BBT)… bank
Wells Fargo (WFC)… bank
SunTrust Bank (STI)… bank
E*Trade (ETFC)... online brokerage
TD Ameritrade (AMTD)… online brokerage
Charles Schwab (SCHW)… online brokerage
Microsoft (MSFT)… Big Cheap Tech
Qualcomm (QCOM)… semiconductors
Texas Instruments (TXN)… semiconductors
EMC (EMC)… data storage
Activision Blizzard (ATVI)… video games
Hyatt Hotels (H)… hotels
Southwest Airlines (LUV)… airline
Spirit Airlines (SAVE)… airline
Royal Caribbean Cruises (RCL)… cruises
Aetna (AET)… health insurance
Humana (HUM)… health insurance
UnitedHealth Group (UNH)… health care
CVS Caremark (CVS)… pharmacy
Becton-Dickinson (BDX)… medical devices
Carrizo Oil & Gas (CRZO)… oil and gas
Range Resources (RRC)… natural gas
Chicago Bridge & Iron (CBI)… natural gas infrastructure
Halliburton (HAL)… oil services
Union Pacific (UNP)… railroad
Norfolk Southern (NSC)… railroad
Under Armour (UA)… sporting products

NEW LOWS OF NOTE LAST WEEK
 
Petrobras (PBR)… state-owned oil company
Diamond Offshore (DO)… offshore driller
Kinder Morgan (KMI)… energy pipelines
Plum Creek Timber (PCL)… timberland
Walter Energy (WLT)… coal stock
Alpha Natural Resources (ANR)… coal stock
Honda (HMC)… Japanese carmaker

premium teaser

A European country up 46% since last year... with more gains to come...
 
This is a riskier trade than Germany. But it has much higher to go from here...
 

Recent Articles
Legal Notices: Stansberry Research LLC (Stansberry Research) is a publishing company and the indicators, strategies, reports, articles and all other features of our products are provided for informational and educational purposes only and should not be construed as personalized investment advice. Our recommendations and analysis are based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

 

Readers should be aware that trading stocks and all other financial instruments involves risk. Past performance is no guarantee of future results, and we make no representation that any customer will or is likely to achieve similar results.

 

Our testimonials are the words of real subscribers received in real letters, emails, and other feedback who have not been paid for their testimonials. Testimonials are printed under aliases to protect privacy, and edited for length. Their claims have not been independently verified or audited for accuracy. We do not know how much money was risked, what portion of their total portfolio was allocated, or how long they owned the security. We do not claim that the results experienced by such subscribers are typical and you will likely have different results.

 

Any performance results of our recommendations prepared by Stansberry Research are not based on actual trading of securities but are instead based on a hypothetical trading account. Hypothetical performance results have many inherent limitations. Your actual results may vary.

 

Stansberry Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

 

© 2024 Stansberry Research, LLC. | Privacy Policy| Customer Service
Stansberry Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website 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 Research, LLC. 1125 N Charles St. Suite 500, Baltimore MD 21202.