{"id":72105,"date":"2015-05-07T04:04:14","date_gmt":"2015-05-07T08:04:14","guid":{"rendered":"http:\/\/countingpips.com\/?p=72105"},"modified":"2015-05-07T07:55:53","modified_gmt":"2015-05-07T11:55:53","slug":"land-of-plenty-discovered-for-income-investors","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/05\/land-of-plenty-discovered-for-income-investors\/","title":{"rendered":"Land of Plenty Discovered for Income Investors"},"content":{"rendered":"
May 7, 2015<\/div>
\r\n<\/div><\/div>

By WallStreetDaily.com<\/u><\/a> \"European<\/p>\n

By Martin Hutchinson<\/a>, World Banking Analyst <\/em><\/p>\n

In the first quarter of 2015, U.S. economic growth came in barely above zero. Similarly, corporate profits have been coming in consistently below estimates.<\/p>\n

In both cases, the culprit was the U.S. dollar<\/a>.<\/p>\n

As savvy investors, therefore, we should look to counter this trend. That means searching for investments where currencies have been weak \u2013 and where growth and earnings may come in higher <\/em>than expected.<\/p>\n

One region, in particular, provides numerous possibilities for income investors right now, and should definitely not <\/em>be overlooked\u2026<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

I\u2019m talking about the eurozone, where prospects have improved recently.<\/p>\n

For starters, almost no oil and gas production exists within the eurozone, so the recent decline in oil prices has been economically helpful.<\/p>\n

Meanwhile, Greece\u2019s troubles have gotten a lot of press \u2013 but the reality is that Greece is a very small part of the eurozone, and it doesn\u2019t much matter whether it stays or goes. Indeed, a \u201cGrexit\u201d would, on balance, be good for the currency, thus improving the discipline of its weaker members and increasing its economic cohesion.<\/p>\n\n\n\n
Editor\u2019s Note:<\/strong> Speaking of currencies, there\u2019s a new one sweeping America right now\u2026 and it\u2019s not the euro. It\u2019s not even Bitcoin. And one simple investment could put as much as $56,700 into your bank account over the next 9 to 12 months. But you must<\/em> get in early<\/a>\u2026<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Finally, The Economist<\/em>\u2018s team of forecasters estimates growth of 1.4% in 2015 and 1.7% in 2016 for the euro area, which isn\u2019t stellar, but is above the recent average.<\/p>\n

Different Strokes for Different Folks<\/h2>\n

Now, the economies of the eurozone still aren\u2019t integrated like American states, meaning there\u2019s a big difference between the disparate eurozone countries when it comes to the availability of good investments.<\/p>\n

In Germany, for example, even the dullest utilities carry yields of only around 3%. That may look attractive to German investors who have to suffer from a domestic 10-year government bond yielding about 0.4%, but it doesn\u2019t suit us red-blooded Americans.<\/p>\n

Luckily there are attractive buys in other countries, and we don\u2019t even have to venture into Greece or other areas where the economics are wild and woolly.<\/p>\n

One reminder: Most European companies withhold tax, typically at a rate of about 20%, on the dividends they pay\u2026 but this withholding tax can be offset against U.S. income tax. That means European dividend stocks aren\u2019t very attractive holdings in tax-free accounts, such as IRAs \u2013 but in taxable accounts, there\u2019s little disadvantage to European dividend income versus its U.S. counterpart.<\/p>\n

Here are some European stocks from different countries and sectors that might be attractive to income investors:<\/p>\n