The eurozone is experiencing a perfect storm of bullish catalysts. Tremendous profits are available for risk-embracing investors who heed the clear economic signals.
Make no mistake, political risk, although improving, remains high in Europe.
The eurozone has experienced quite a bit of volatility this year. Greece, Brexit, and fears of a nationalist French state following Brexit out of the European Union added tremendous political uncertainty to the financial markets.
The Bullish Case for Europe is Still Strong
Fortunately, many of these fears have proven unfounded. The recent French election resulted in the victory of the pro-eurozone candidate, improving sentiment across the board.
Due to the political uncertainty, on a price-to-book ratio European equities are nearing levels equivalent to U.S. equities’ 40-year lows. Eurozone equities have severely underperformed the U.S. market since the 2008 rout. As a result, full value has not been realized and opportunities exist for profit-seeking investors.
Analysts are forecasting EU stock earnings growth of 11 percent in 2017 due to the commodity recovery, small margins, and improved currency environment.
When compared to expected growth of just 9 percent in the United States, it’s obvious where the opportunity lies.
Here than, are five ways to ride the European bull market…