Another idea for stock pickers is to play Europe via multinationals with big exposure on the content — such as Detroit auto giant Ford (F), for example.
While Ford earnings have been fueled by sales of its F-Series trucks at home, it’s important to note that the stock has been rising despite the fact that Europe operations are still running in the red. But the good news is that Ford has been able to increase its market share in Europe through the downturn, so if and when a recovery takes root, that could mean significant profits for the automaker.
This is obviously a secondary play on Europe, because you’re buying a U.S. based stock that has many moving parts … but done right, this is a good way to hedge your bets while still having enough of a footprint in Europe to provide outperformance.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.