Investors can gain from european banks’ pain – marketwatch

Before we get to other banks from the region that look like buys, let’s circle back to the magazine-cover indicator because it can be deliberately misread by media cynics. Gas refrigerator not cooling This indicator does not mean that editors constantly make “bad calls” because they are dumb. Gas 87 On the contrary, editors are very good at sensing what readers want to learn about. Gas x ultra strength directions This makes their favored topics for coverage a great reflection of the sentiment of the crowd and, thus, a handy measure of when emotions have hit extremes.

Another great contrarian signal on European banks is that it was almost impossible to find money managers who would speak favorably on the sector for this column. M gasbuddy app Besides uncertainly about Europe, the big complaint is that European banks will have trouble making money because of the flat yield curve. Wb state electricity board recruitment 2015 Banks borrow short term and lend long term. R gasquet tennis So when both rates are too similar, the spread vanishes.

The problem with this argument against European banks is that the yield curve in Europe won’t stay flat forever. Gasco abu dhabi email address A flat yield curve typically reflects negative investor sentiment on growth and inflation. Origin electricity account But what if those investors are wrong?

After all, the U.S. Electricity allergy just “surprised” many analysts once again with a return to strong jobs growth in May. D cypha electricity And many economic indicators in Europe — like jobs and manufacturing — are suggesting fairly decent strength there, too, notes Jim Paulsen, an economist and strategist at Wells Capital Management. Gas explosion Overall growth recently clocked in at 1.7%, a lot higher than a year ago. Electricity electricity song And central banks in Europe and elsewhere will be doing even more to spur growth now that that unease has returned — or at least they will delay tightening.

“In Europe they are practicing a policy you would not see unless they were in the midst of a global depression, and the data say anything but that,” says Paulsen. Gas water heater reviews 2013 “I really think that people are underestimating growth pretty much around the world. E gasoline We are going into a period where it is heading north, not south.”

The bottom line: If Europe’s economy is stronger than a lot of people think, and that becomes apparent, European banks could snap back a lot faster than many analysts predict.

For a read on European banks, a go-to source for me is Chad Deakins of Capstone Global Investments. Electricity balloon experiment He’s regularly put good European bank-sector calls in my investing columns over the years. Electricity calculator He’s cautious near term on Italian banks. Gas 91 But he agrees the valuations are “incredibly appealing,” and that you can probably make great returns on them as long as you have a multi-year time horizon. Electricity magnetism and electromagnetic theory pdf As for the risks, he thinks that so many Italians own Italian bank stocks and debt, the government is unlikely to let the banks go under.

based in Brussels. Grade 9 electricity test and answers It pays a 6% dividend yield, and it trades close to book value, a discount that seems unwarranted. E 87 gasoline “KBC Group is not strongly related to the Italian crisis or the issue with the U.K.,” says Deakins. Power outage houston report “It has just been beaten down because all the other bank stocks have been beaten down.”

to the buy list at his Prudent Speculator stock newsletter. 3 gas laws He thinks this Dutch bank is financially sound, and he likes the 7%-plus dividend yield. 76 gas station hours The bank trades below tangible book value.

He thinks those banks are financially sound because they have de-levered and raised capital over the past few years. K gas oroville “We see ample capital and funding buffers,” he says.

with a “buy” rating, citing valuation in the current pullback, a restructuring that has the bank exiting some non-core foreign retail banking business, and cost cutting in investment banking.

Bryan Lloyd, international stock portfolio manager at Harding Loevner, is among those who remain leery of Western European banks. Gas efficient suv 2010 But he likes what he sees in the sector in Eastern European countries like the Czech Republic, Poland, Romania and Georgia.

Loan growth is better. Gas city indiana post office Banking in those countries is often dominated by a few players, so competition is lower. E gaskell north and south And unlike Western European banks that have gotten into complex financial products, those banks have stuck to the basics of taking deposits and making loans. Electricity video ks1 “So their balance sheets are more transparent, and it is easy to get a sense of what risks they are taking,” says Lloyd.

Lloyd describes this as a “boring” bank, but that might not be so bad. Wireless electricity how it works “Boring in the banking industry is a good thing,” says Lloyd. Zyklon b gas effects “Over time you can be a successful bank and earn great returns simply by not doing things wrong.”

one of the larger banks in Poland. Electricity history united states Unlike many of its peers, it did not get involved in risky Swiss franc-based mortgage lending, which blew up on competitors when the Swiss franc revalued, making repayment harder for borrowers. Electricity 1 7 pdf Bank Pekao now stands out as one of the best capitalized banks in Poland. Electricity generation definition “So they can be more aggressive,” says Lloyd.

Those banks are nearly impossible to buy on U.S. Gas in back relief exchanges. Z gas ensenada So for exposure, consider shares of a Harding Loevner fund like the Harding Loevner Emerging Markets Advisor

It’s got a four-star rating (out of five) from Morningstar. Grade 6 electricity test And with some help from Eastern European banks, it beats competitors nicely — by 3.4 percentage points, annualized, over the past five years.

At the time of publication, Michael Brush had no positions in any stocks mentioned in this column. Gas dryer vs electric dryer operating cost Brush is a Manhattan-based financial writer who publishes the stock newsletter, Brush Up on Stocks. Electricity electricity lyrics Brush has covered business for the New York Times and The Economist group, and he attended Columbia Business School in the Knight-Bagehot program.