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Investing in the New Europe

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Investing in the New Europe

Bloomberg Press,

15 min read
10 take-aways
Text available

What's inside?

Don’t be deceived by the sagging euro — Europe is a great investment.

Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Beginners

Recommendation

Eric Uhlfelder’s book could be titled "Europe 101: An Introduction for Americans." European readers will not gain much by reading this work, which is filled with the very basic basics of Europe’s politics, economies and companies. But for Americans looking to diversify their newly constructed stock portfolios, it is a valuable resource, profiling the EU and the economic strengths and weaknesses of EU and non-EU countries. The book also profiles key companies, such as Nokia, SAP, Adecco and others, and discusses which individual stocks and mutual funds you should acquire. getAbstract recommends this interesting primer to Yankee readers, who might be surprised to learn how fast Ireland is growing, how much Austria’s fling with the far right cost the country and how a French utility firm is positioned to take over the world.

Summary

The Promise of Europe

Investors should buy European stocks for two reasons. First, continental companies are superb investments and, second, improving corporate fundamentals are driving up European earnings. Europe encompasses 19 major markets, each with its own resources. Despite the continuous decline of the euro, the big news is the government and corporate restructuring that’s been going on for nearly a decade.

The "new Europe" is attracting the United States’ largest banks and investment houses and the big money is betting that Europe is poised for success. European companies are becoming increasingly Americanized. Systemic change makes European investment attractive not only as a way to diversify your portfolio, but as a way to lock in strong returns. The common currency has fueled progressive change including improved macroeconomic conditions, market deregulation and the increased efficiencies of more open competition. "The bottom line is that you can find Microsofts, Baby Bells and ExxonMobils in bourses across Europe."

Some Pretty Heady Numbers

Western European equity markets, which have been on a tear, rose collectively in 1999 by nearly 28% ...

About the Author

Eric Uhlfelder  has been covering international markets as a writer and analyst for more than 10 years. His work is featured in Business Week, Euromoney’s Global Investor, Individual Investor, Mutual Funds and Fidelity Focus magazines.


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