This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three Ways to Profit From Europe's Turmoil

You know you're in trouble when you get dissed by spectacularly ineffective U.S Treasury Secretary John Snow. But that's exactly what happened to the 25-country European Union last week.

Sounds like a buy signal to me. The news has been so bad for Europe in the last two weeks that I think this is a good time for contrarian U.S. investors to pick up a European equity or two.

Snow's lecture added insult to what has been, by anybody's count, an extremely tough three weeks for Europe. On May 29, the French soundly rejected a new constitution for the European Union. Days later, Dutch voters followed suit.

The euro, which has been weak against the dollar, kept on falling on that news, hitting a nine-month low at $1.2018 on June 15. Governments in France, Italy and Germany teetered, and pundits now expect Germany's Gerhard Schroeder to go down to defeat this fall.

On June 17, the European Central Bank added fuel to the euro fire when Vice President Lucas Papademos worried that diverging economic performance inside the eurozone was a threat to the monetary union.

And the sight of Europe's leaders squabbling amongst themselves at the European Union's budget summit in Brussels, with no budget agreement emerging from the meeting, has rattled nerves further. (For more detail on turmoil in the eurozone, see my recent column " Thank Europe for a Stronger Dollar .")

But all this hasn't kept Europe's stock markets from hitting new highs. In fact, all this seeming chaos may actually be fueling the advance.

A weaker euro, for a start, means that the products of eurozone companies sell for less in dollars. That's a big boost to exports for export-driven economies, such as Germany's.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PFE $34.37 -0.35%
USB $43.80 1.60%
NSANY $21.26 -0.14%
RHHBY $36.90 0.16%
HBGRF $2.82 2.17%

Markets

DOW 18,093.82 +81.88 0.45%
S&P 500 2,115.09 +5.49 0.26%
NASDAQ 5,101.2690 +24.7450 0.49%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs