Invest in Europe Now!

An insider's guide to investing in Europe

With the U.S. market in shambles, investors are looking for other places to put their money. Europe has become the destination of choice, and will continue to be for the foreseeable future.

Using the different perspectives of an author who lives in Europe and an author who lives in the United States, Invest in Europe Now! is one the most informative guides to making money outside North America. It outlines the best ways to take advantage of the rapidly shifting global financial environment and shows you what indicators to follow, what instruments and markets are best poised for growth, and how to avoid various pitfalls along the way.

• Outlines the safest ways to invest in Europe and secure the returns you desire
• Written by a unique author team, which represent both the U.S. and European perspective
• Discusses how some European markets and stocks are relatively more attractive than their American counterparts

Throughout this book, David Kotok and Vincenzo Sciaretta reveal the realities of investing in Europe and how you can benefit from doing so.

Foreword.

Preface.

Acknowledgments.

Introduction.

Part I Macro Issues.

Chapter 1 Euro Versus Dollar.

Chapter 2 Convergence and Integration.

Chapter 3 Taxation.

Chapter 4 Stock Market Evolution.

Chapter 5 Accessing Europe with ETFs.

Part II Stock-Specific Strategies.

Chapter 6 Successful Strategies in the Eurozone.

Chapter 7 Valuation.

Chapter 8 Old Continent Stocks and the Super-Euro.

Part III The Guru Chapters.

Chapter 9 When It Is America That Diversifi es Out of the Dollar
An Interview with William Clark.

Chapter 10 Yes, Europe Is Cheaper than the United States (and the Gap Is Not Justifi ed any Longer)
An Interview with Felix Zulauf.

Chapter 11 Europe–Asia: The Promising Linkage
An Interview with Marc Faber.

Chapter 12 Eastern Europe: The Prognosis Looks Favorable
An Interview with Mark Mobius.

Chapter 13 Europe Is Moving Toward the Center-Right, the United States Toward the Left
An Interview with Edward Yardeni.

Chapter 14 For Now I Go with Continental Europe
An Interview with Ken Fisher.

Chapter 15 Looking for Gems in the Eurozone Bond Market
An Interview with Emanuele Ravano.

Chapter 16 The Path of Least Resistance Leads to a Stronger Euro and a Weaker Dollar
An Interview with Catherine Mann.

Chapter 17 Eurozone Stocks: When Optimism Prevails
An Interview with François-Xavier Chevallier.

Chapter 18 The Credit Crunch Fallout Is Dreadful Everywhere (but the Eurozone Can Survive)
An Interview with Bob McKee.

Notes.

About the Authors.

Index.

"In an era when American are perhaps more provincial than ever with their investments, 'Invest in Europe Now!' is a very useful addition to the literature." (Barron's, July 2010) DAVID R. KOTOK is the cofounder and Chief Investment Officer of Cumberland Advisors—with over $1 billion under management. He currently serves as a Director and Program Chairman of the Global Interdependence Center (GIC), whose mission is to encourage the expansion of free trade, reduce international conflicts, and improve worldwide living standards. Kotok's articles and financial market commentary have appeared in the New York Times, the Wall Street Journal, and Barron's, and he is a regular contributor to CNBC programs such as Morning Call, Power Lunch, Squawk on the Street, Squawk Box Asia, and Worldwide Exchange. Kotok lives in Sarasota, Florida.

VINCENZO SCIARRETTA has written for Italy's leading financial magazines, works as an advisor, and runs the Web site www.yeswetrade.com, which is dedicated to individual traders and investors. He has been covering European and international financial markets for the last twelve years and has a background in technical analysis of stocks and commodities. Sciarretta has presented his work in leading publications such as Futures and Technical Analysis of Stocks and Commodities. He¿has given speeches in Frankfurt, Milan, Chicago, Philadelphia, and other parts of the world on topics ranging from technical analysis of the financial markets to the euro and its implications. Sciarretta lives in Sirmione, Brescia, Italy.

With the U.S. financial system facing unprecedented reorganization—after one of its worst crises ever—and European markets continuing to mature, the attractiveness of Europe as a viable investment option has grown quickly and will continue to do so for the foreseeable future.

Nobody understands this situation better than authors David Kotok and Vincenzo Sciarretta, and with Invest in Europe Now!, they zero in on the Eurozone and the United States as they discuss the potential and pitfalls of investing in a rapidly shifting global financial environment. Page by page, they take an historical perspective on the evolution of these markets and methodically show why, in the aftermath of the financial crisis, the equity investment pendulum is set to swing in favor of the Eurozone.

Divided into three comprehensive parts, this informative guide opens by outlining today's macroeconomic framework and laying out the argument regarding where you should invest. In doing so, it reviews the evolution of stock markets and the making of the single Eurozone market, discusses the success of the euro and makes a euro-bullish case relative to the dollar, and walks you through the labyrinth of taxation.

With this information in hand, Part Two moves on to offer a detailed analysis of successful investment strategies used in the region and examines issues related to valuation and emerging Europe. It also addresses some effective options for investing in Europe, most notably low-cost exchange-traded funds.

Rounding out this comprehensive discussion, Part Three of Invest in Europe Now! contains valuable insights and advice on where specific investment opportunities present themselves in Europe. The section includes ten unique interviews with supergurus William Clark, Felix Zulauf, Marc Faber, Mark Mobius, Ed Yardeni, Ken Fisher, Emanuele Ravano, Catherine Mann, FranÇois-Xavier Chevallier, and Bob McKee.

Written from the unique perspective of an author who lives in Europe and an author who lives in the United States, this book offers an excellent assessment of the realities of investing in Europe and how you can benefit from doing so.

Praise for Invest in Europe Now!

"For over thirty years, David has introduced many investors to global interdependence issues through his newsletter and his educational and enjoyable trips to Europe as well as the rest of the global investment scene. In this book, long overdue, David and Vincenzo guide both the novice and the experienced investor on the journey of careful investing in Europe. In this book, David and Vincenzo guide the fundamentals of economic competitiveness, currency volatility, and tax considerations. This book should be the first book for the investor truly interested in proper due diligence before the first dollar is spent."
—John E. Silvia, Chief Economist, Wells Fargo

"David Kotok is that rarest of creatures on Wall Street: objective, creative, unemotional, intelligent, and curious. His kind visage appears too infrequently on business television, where he is a rare breath of sanity amongst the professional hucksters and charlatans. If Kotok says you should look closely at Europe as an investment option, well then, you best drop everything else and look more closely at Europe!"
—Barry Ritholtz, author, Bailout Nation, and Creator/Writer, The Big Picture

"An excellent read and a must for investors. Political and economic climate changes are creating substantial global investment opportunities but also minefields. Kotok and Sciarretta clearly identify the forces that will shape investment returns in the years to come and provide tools and a strategic framework to help the investor navigate through the complex investment landscape."
—Dr. William C. Dunkelberg, Professor of Economics and former dean, Fox School of Business, Temple University, and Chief Economist, National Federation of Independent Business

"Kotok and Sciarretta pose a profound challenge to the conventional wisdom, that says the dollar will remain the dominant reserve currency of the world. Whether or not the EU outperforms the U.S. economy as they suggest, the mere fact that credible observers are thinking about such possibilities represents a revolutionary, potentially destabilizing trend for the United States. Global investors must consider their arguments carefully."
—Christopher Whalen, Cofounder, Institutional Risk Analytics

"Kotok and Sciarretta's volume provides a crucial view of the U.S.-EU competition for economic and financial preeminence in the post–credit crisis world. As the U.S. adopts more liberal democratic institutions, the EU's shift away from those same principles creates the potential for a crossing point in economic and financial preeminence. The volume is therefore a valuable starting point for viewing the dynamics of the potential shifts in global hegemony and investing accordingly."
—Dr. Joseph R. Mason, Hermann Moyse, Jr./Louisiana Bankers Association Endowed Professor of Banking, Louisiana State University; Senior Fellow, The Wharton School; and Partner, Empiris LLC