Investment Opportunities in Europe

European equities are back in favor with Investors, who pulled approximately $100 billion from the asset class in 2016, writes Validea CEO John Reese in a recent article for Nasdaq. The article explains that below average performance in oversea stocks over time has led to a big difference in valuations compared to the U.S. market, presenting opportunities for investors. The article also discusses mean reversion and the role it plays in market movements. Reese identifies the following five high-scoring international stocks: Vale SA (VALE) is a global producer of iron ore, iron ore pellets and nickel, and earns high marks for […]

Herro's Take On Greece

Recently, David Herro of Harris Associates spoke to CNBC about his thoughts on the Greece instability, and how that affects European investments — and the top fund manager’s outlook may well surprise you.

Herro’s Take On Greece

Recently, David Herro of Harris Associates spoke to CNBC about his thoughts on the Greece instability, and how that affects European investments — and the top fund manager’s outlook may well surprise you.

Herro: There's Value In Europe

Top fund manager David Herro is finding a lot of value in the unloved European region, as well as in Japan. In a recent letter to his Oakmark International shareholders, Herro said he had about 80% of the portfolio in Europe and 11% in Japan. “How we are positioned is really a function of where we are finding individual-company value,” Herro tells Morningstar. “I think it’s really important to realize that a lot of these European and Japanese multinationals have revenue streams and cash flow streams that are really sourced from all over the world. I think that is one of […]

Gross: Austerity Won’t Work

PIMCO’s Bill Gross says that what is needed to fix the European debt crisis is growth and budget discipline — not mere austerity. “No, that doesn’t work,” Gross says of the austerity approach in an interview with the Associated Press. “Eliminating a budget deficit won’t produce growth. It really requires a delicate combination of growth and budget discipline over the longer term. Policymakers have it tough.” Gross says that bond investors do look at debt levels, but they also look at growth. And right now, that’s what’s lacking in Europe. “If a country can’t grow its way out of its […]

Despite Euro Chaos, Fisher Still Bullish

While the chaos surrounding recent elections in Europe is scaring many investors, author and top-performing money manager Kenneth Fisher says it doesn’t change his bullish outlook for stocks for the year. Fisher tells Reuters that he thinks the European debt situation won’t topple the stock market, and that the fears are overhyped.  “We have seen this movie about 15 times, we should be ashamed of ourselves to fall for the same movie three years in a row,” he said. “If this isn’t priced in, I don’t know what is.” Fisher thinks the shift toward anti-austerity candidates in Europe could actually […]

Mobius Bullish on Europe

Templeton Asset Management’s Mark Mobius says he is upping his exposure to European stocks, despite the continent’s lingering debt woes. “The stocks in the European countries have gone down excessively as a result of the bad news emanating from this crisis and we find good investment opportunities at bargain price and we are increasing the purchases of these stocks,” Mobius says, according to Bloomberg. Mobius adds that “we don’t think the crisis will last forever and the European economies will recover nicely, there will be much more fiscal disciple in one year or two”. He says he’s buying consumer-oriented stocks, […]