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,"