Dividends4Life: Contrarian Play In Europe

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Contrarian Play In Europe

Posted by D4L | Tuesday, November 01, 2011 | | 0 comments »

Stocks in Germany and France saw declines of nearly 25% in the third quarter, while those in Italy fell by more than 33%. However, in all this carnage, forward-thinking investors could find some amazing deals. Following Warren Buffet's wisdom, by "being greedy when others are fearful," Europe currently offers a fertile ground for contrarian investors.

Broad measures for European equities are trading at historically low metrics. The SPDR EURO STOXX 50 (NYSE:FEZ), which tracks Europe's 50 largest companies, can be had for a P/E of less than nine and nearly 5.49% dividend yield. Investors can use this ETF, or the iShares S&P Europe 350 Index (NYSE:IEV), as a broad way to play the region.

Source: Investopedia

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