These Stocks Could Safely Deliver 53% Returns By 2015

Most Americans have no idea what is going on in Europe…

Many probably can’t even name Germany’s capital city… and Germany is the fourth most powerful economy in the world (behind the U.S., China, and Japan).

So most Americans certainly aren’t aware of what’s been happening in Germany’s financial markets.

But it’s time to pay attention…

[ad#Google Adsense 336×280-IA]In short, investors have turned on Germany.

But they’re making a mistake… and giving us an incredible opportunity in the process.

Today, stepping in to buy could lead to 53% gains by 2015.

And we have a simple and safe way to make the trade.

Let me explain…

While most folks don’t know what’s going on Europe, they do know one thing… Germany is the economic engine of the European Union.

A devastating recession, high unemployment, and countless bailouts have plagued Europe over the last few years. Germany stood throughout the wreckage as the glue holding the European Union together.

Of course, this isn’t surprising when you consider the economic position Germany has been in…

While unemployment in places like Spain peaked at over 27%, Germany’s economy remained stable. In fact, Germany’s unemployment rate was lower than that of the U.S. during the financial crisis.

And while many European economies are still below pre-crisis levels, Germany’s GDP continues to reach new highs.

But you wouldn’t know these good things are going on by looking at Germany’s stock market…

You see, we should expect Germany’s solid economic position to show up in stock prices. Investors should bid German stocks to much higher prices than others around Europe. But surprisingly, that isn’t happening. The table below shows what I mean…

As you can see, Germany actually trades at a discount to other major European stock markets based on this year’s and next year’s earnings. And only Italy is cheaper than Germany when you look at sales.

In short, Germany offers the most safety in Europe. It is the European Union’s strongest nation, both economically and politically. Yet, we can buy German stocks at a discount to most of Europe. That’s crazy!

Of course, this shouldn’t happen. Investors should bid up the price of German stocks. And I believe they will over the next few years.

You see, German companies trading on the stock market are expected to grow earnings by 53% through the end of 2015. This growth should translate directly into stock market gains as investors realize the incredible value in Germany.

If things really get going – and investors bid up prices to capitalize on Germany’s strength – we could see ever-larger gains.

Today, you can easily position yourself to profit with the iShares MSCI Germany Fund (EWG). This simple fund holds a basket of Germany’s largest companies. And it’s the easiest way to make the big-picture investment. (This fund is a recommendation in our True Wealth newsletter.)

Investors in general have given up on Germany. Meanwhile, we can buy today – for a lower price than most of Europe – and set ourselves up for 53% gains through 2015.

Don’t miss this opportunity.

Good investing,

Brett Eversole

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Source: DailyWealth