Three Stocks Set to Soar in 2014

This Takes Two Minutes (But Could Help Fund Your Retirement) Watching the 120-second video below will have a dramatic impact on your taxes, your wealth, your retirement and your legacy. Click here or on the video above for the most rewarding two minutes of your year. Monday, December 2, 2013 Three Stocks Set to Soar in 2014 Marc Lichtenfeld, Chief Income Strategist, The Oxford Club By the time you read this I will be gallivanting around Zurich for The Oxford Club's European Opportunity Expedition. I'm taking a group of investors to Europe to explore unique investments. Most investors still haven't warmed up to Europe. It hasn't been that long since daily headlines featured the impending economic collapse of Greece, Cyprus and Spain. And while those countries are clearly not economic utopias, they haven't gone over the cliff either. The unemployment rate in Greece is still a staggering 27.3%. Spain's isn't much better at 26.4%. In the eurozone, joblessness is still at record highs in the double digits. Several economies are still in recession. So it's no wonder that investors are avoiding Europe. In a CNBC poll, only 11% of respondents said they are considering investing in Europe. But as I recently told CNBC's Amanda Drury, I zig when others zag. I don't want to buy a stock (or a market) when everyone is talking about it. I want it when everyone is running away scared. As Warren Buffett said, "be greedy when others are fearful." A Contrarian's Dream Come True So I'm excited to be in Europe, because I think it's home to better investment opportunities than the U.S. Consider: The Bloomberg European 500 Index (BE500) trades at a P/E of 21 versus 16 for the S&P 500, but on a forward basis is 15 versus 16. That suggests earnings in Europe are projected to grow faster than in the U.S. It also implies that European stocks are cheaper than American stocks relative to their growth. The price-to-book ratio of the BE500 is 1.78 versus 2.6 for the S&P 500. According to book value, Europe is cheaper. There are 21 companies in the S&P 500 trading below book value, but 63 companies in the BE500 below book value. A stock that trades below book value means that if management were to liquidate the company, shareholders would receive more per share than they currently do in the market. In other words, the shares are trading at less than their intrinsic value. There are quite a few financial names such as Royal Bank of Scotland (NYSE: RBS) among the list of European stocks trading below book value. And ArcelorMittal (NYSE: MT), the Luxembourg-based steel company, trades below $17 but its book value per share is over $27. French water utility Veolia Environnement (NYSE: VE) sports a 4.7% dividend yield but trades at just 0.8 times its book value. Both the S&P 500 and the BE500 have had stellar years, with the S&P up 31% over the past year, while its European cousins lagged at 23%. I expect European stocks to outperform in 2014. In fact, in the upcoming Oxford Income Letter, which will be out on Wednesday, I recommend an out-of-favor, Europe-based dividend payer that yields 4.7%. I've been watching the stock for 15 years and only now am pulling the trigger on it. To try out The Oxford Income Letter risk-free, click here. I'm going to continue to hunt for attractive undervalued European stocks. But that will have to wait until tomorrow. Right now, there's a fondue with my name on it and a yodeling festival to get to.   Recent Articles: Wealthy Retirement Be Very Afraid of This High-Yield Fund: For the first time ever in the long and storied history of The Safety Net column, Marc looks at a mutual fund... one with a 5.4% yield. Three Tax Blunders the IRS Can't Wait for You to Make: There are many ways to pay more than your fair share of taxes. But these are the simplest steps you can take to ensure that Uncle Sam is digging into your pockets more than you have to legally allow. Recent Articles: Investment U What You Need to Tell Your Kids Today: So few parents give their children the gift of financial wisdom. Most parents over age 50 have never discussed investing with their children. Are you one of them? Ignore the Dividend Bubble Babble: Dividend stocks may be popular. They may even be hot. But to suggest that they are so frothy that they are going to crash is not logical. Breaking Information on Stock Exchange Bylaw "Section 703" Thanks in part to a little-known stock exchange rule, some pre-retirees and retirees are now collecting 6 to 21 times more income, over time, than the average investor. It's called Regulation "Section 703," and we estimate not 1 in 1,000 Americans have heard of it. But you can get all the details on this little-known, portfolio-juicing plan right here. Two-Minute Retirement Solutions The Best Advice You'll Get   Click here to post a comment on WealthyRetirement.com You are receiving this email because you subscribed to Wealthy Retirement. To unsubscribe from Wealthy Retirement, click here To cancel by mail or for any other subscription issues, write us at: Wealthy Retirement Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Wealthy Retirement. 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