European equities stand to benefit from a number of tailwinds in 2016. We highlight two stocks that should outperform and two exchange-traded funds that offer exposure to this upside while hedging out adverse currency effects.
The EU economy is in the early stages of a recovery and Western Europe’s top equity markets trade at reasonable multiples, suggesting there’s more upside to come. With US economic growth showing signs of slowing and market leadership narrowing, we look to diversify internationally without taking on currency risk.
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.
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.
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