EWG - Why German Stocks Look Attractive
Over the long run, German stocks have matched the performance of US stocks. But they've lagged behind in recent years, and now look quite cheap. There are some short-term risks, such as a slowing European economy and the potential for big US tariffs on car imports. But German stocks look like a good medium- to long-term prospect at current levels.
At the end of January, the MSCI Germany index had a trailing price-to-earnings (P/E) ratio of 13, price-to-book (P/B) ratio of 1.5, and a dividend yield of 3.3%.
Meanwhile, German government bonds, known as "bunds,"