European markets are showing signs of severe distress. Short-term government bond yields in Greece now top 90% in Greece and 17% in Portugal. German and French stocks ended the third quarter down more than 25%. Italian stocks dropped nearly 33%. With protests and strikes as common as wild stock market swings, a default or structural shift in entitlement beleaguered Europe seems almost a given.
Yet, even amid the dismal headlines, now might be the time to begin looking at European stocks, which have been given the pariah status afforded to dot-com stocks after the 2000 collapse: unquestionably weak and widely avoided amid a relentless negative news cycle. But not unlike Amazon, Priceline or a few other bubble-era survivors which went on to achieve substantial growth, the best European equities will eventually rise again.
A few weeks back, we looked at Greek shipping stocks. Here are a few more fund and stock ideas to consider:
BLDRS Europe 100 ADR Index (ADRU)
In terms of sectors, telecom has already shown notable strength in the fourth quarter, buffeting many of the stocks which have been decimated during the region's collapse. Although domiciled in extremely distressed economies, companies like Telecom Italia (TI)
Just like their larger brethren, Europe's small-caps have also taken their lumps. A lesser followed fund like WisdomTree Europe SmallCap Dividend ETF (DFE)
Among developed European countries, few have been hit as hard as Ireland, which has already nationalized large parts of its troubled financial system, including Anglo Irish Bank. The Irish Stock Index remains down 74% from its 2007 peak, the equivalent of the Dow Jones Industrial Average trading at 3,600.
MSCI Ireland Capped Investable Market Index Fund (EIRL),