European stocks are among the cheapest in the world. As a value investor, I like to think that an attractive price is its own catalyst for a stock, though taking this approach generally involves patience.
But why wait if you don’t have to? Right now, we are on the cusp of one of the greatest rallies of our lifetimes. Not only are European stocks cheap, but they’re about to get the mother of all catalysts from the European Central Bank.
Here’s what you need to know … and how to profit from this enormous tailwind.
European stocks are following the same trajectory as U.S. stocks on about a two- to three-year lag. The U.S. emerged from its financial crisis in early 2009 and implemented “QE Infinity” in late 2012. Europe emerged from its sovereign debt crisis in 2012 and — it appears — will be putting its own quantitative easing program into place later this year.
— Guru Focus