One example of a turnaround play worth considering is German industrial giant Siemens (SI). The company has been battered for a number of reasons, including the global downturn and its Europe exposure, but the negativity seems priced in; Siemens shares are down up roughly 8% year-to-date and the company warned a few months ago that it would miss its 2014 earnings forecasts … so at worst the stock moves sideways and delivers a 3.4% dividend.
Another cyclical play would be European banks in healthier nations like Switzerland. Credit Suisse (CS) and UBS (UBS), as well as some U.K. banks like Lloyd’s (LYG), have done quite well this year and dramatically outperformed both U.S. and European stock market indices. As the EU recovers and lending mends, these will be great ways to ride the rally.