World Stocks on Sale

SUMMARY

Buy the iShares Currency Hedged MSCI Germany Fund (HEWG)

UPSIDE
28%-50%

DOWNSIDE RISK
Use a hard stop at $27.50 (5.8%)

TIME IN TRADE
One to two years

This countries stocks have the best of both worlds they are cheap and in an uptrend.

With US stocks arguably overpriced we have a wonderful opportunity to have higher potential returns with the same level of risk.

I recommend buying German Stocks today.

Germany is the fourth largest country by GDP today.

German economy is showing strength recently in their GDP growth and PMI numbers.

Additional Germans are some of the most financially responsible people in the world. They take great pride in keeping debt in check and growing at prudent rates. Germany's debt-to-GDP ratio was 68% last year. This is below Europes 83%, US 106% and Japan a crazy 250%.

Historically US stocks and Developed European stocks trade at similar valuations. However, right now you can buy German stocks cheap at EV/EBITDA ratio of just 7.8.

German stocks are starting to outperform US equity growth.

As you can see German stocks are in a strong uptrend but have recently pullback to support offering a good entry point.

Buy shares of HEWG today and use a protective stop loss at $27.50.

If German stocks approach an EV/EBITDA ratio of 10 this represents a potential gain of 28% without the need for earnings growth. But the stocks could easily increase 50% as long as the German economy continues growing.

Thank you for your reading.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.