Trolling for Bargains Across the Pond

This past weekend was the wife's birthday, so she was in charge of the social calendar. Naturally, we headed back to the coast and spent most of Sunday on the beach -- and, once again, I engaged in heavy anti-frolicking activity by catching up on the news of the week. One article that really stood out in my reading was the piece in Barrons on the likelihood of a sustained recovery in the European economy. If author Jonathan Buck is even close to correct here, this will have huge implications for worldwide markets and economies. The total European economy is bigger than that of either China or the U.S., and renewed demand from that continent could be huge for the global growth picture.

It is also good news for stock-pickers like me. I have a pretty strong presence in European equities. For some time now I have owned such financial names as Royal Bank of Scotland (RBS) and Aegon (AEG). The stocks have done OK, as money-printing has pushed many European markets, but both remain very cheap relative to book value. A sustained recovery across Europe -- even if it is a slow, grinding one -- could drive both of these stocks to a premium to book over time. The same will hold true for other cheap European equities, as well -- so I sat down this morning and ran some screens in order to see what I could find....532 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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