With the European Central Bank planning to start buying bonds and asset-backed securities, cyclical stocks represent the best bet for value-oriented investors seeking exposure to the Continent’s comeback story.
With the MSCI World Index hitting a new high, some pundits have warned of an unsustainable equity bubble. But valuations look reasonable in many international markets. Asia offers the best risk-reward proposition for the back half of 2014 and the long term.
European equities will continue to reward patient investors, but screaming bargains are harder to come by after the recent rally. We highlight four stocks that are good bets for a globetrotting portfolio.
Investors who think that developed markets can deliver strong returns if China’s economy collapses will be painfully off the mark. Fortunately, we don’t foresee a complete meltdown for China. The world’s quintessential emerging economy also includes pockets of opportunity for investors with a longer time horizon and the stomach for near-term volatility.
After last year’s rally, European equities trade at elevated valuations; a strengthening EU economy and meaningful earnings growth will be the key to further appreciation. We take profits on a number of names we highlighted last fall and highlight our top three European stocks for the coming year.
Despite the precipitous selloff of emerging-market equities, the group’s long-term growth story remains intact. We highlight the best strategy for patient investors looking to add exposure to this theme.
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