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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

7 Undervalued European Stocks To Diversify Your Portfolio During Debt Talks

James Dennin, Kapitall: With uncertainty in the US, investors may look abroad. We found seven undervalued European stocks to consider.

The US debt ceiling debate rages on and while many analysts seem to agree that a deal will be reached, it's also safe to say people are considering other markets as safer bets for their money.

[Read more on Europe from Kapitall: 3 Profitable European Stocks Amidst Mixed Messages from the Continent]

For one, there's China. After a long appeal, the Chinese government has succeeded in lobbying the British government to roll back regulations on the use of Chinese currency in England. The result is that London's stock exchanges will become the Western center for trading Chinese stocks. Not US exchanges.

Which does not necessarily bode well for New York's bid to get the highly lucrative, much anticipated Alibaba IPO. With regulations rolled back, British investors can apply for licenses to trade Chinese currency directly, and China would move operations of its three biggest banks to London, from Luxembourg.

While the United Kingdom was already the biggest center of overseas trading for China, at about 5 trillion RMB per day, the move will make it easier for Chinese banks to secure financing in the west, and give British banks valuable inroads. 

Now, this doesn't necessary mean the relevance of the US markets is declining, simply because of prolonged budget negotiations.

The government shut down often - eight times in fact - when Ronald Reagan and Tip O'Neill were in charge of the executive and legislative branches respectively. While these shutdowns were smaller, and didn't follow a US credit downgrade, there is a strong argument to be made that the media is exacerbating the situation.

Investing ideas

That being said, there are some investors who might be interested in moving their money away from American companies until a compromise is reached. While US stocks in general are up as of this morning, and have performed fairly well over the week, a lot of that has to do with Janet Yellen's appointment to the Fed.

She is unlikely to end tapering, and quantitative easing is generally very good for the stock market.

But for those investors looking to hedge their risk against the ramifications of further political squabbles, consider Europe, where the re-election of Angela Merkel, a buoyant French stock market, and even the possibility of a Greek turnaround are improving sentiment.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs