“The good news is that many of these companies still sport very reasonable valuations. On average the stocks trade at just around book value; before the financial crisis of 2008, banks traded at closer to two times book,” according to Barron’s.
Last month, Goldman Sachs upgraded its three-month view on European equities to “overweight” and downgraded U.S. stocks to “underweight,” arguing that stocks at home typically underperformed in the 12 months after a Federal Reserve’s first rate hike, reports Ansuya Harjani for CNBC.
Goldman is overweight Italy, Spain and Germany. Those countries combine for almost 28% of EUFN’s weight.
iShares MSCI Europe Financials ETF