European Financials Combine Low Price With Strong Momentum

U.S. stocks have seen big rallies this year, and may be in need of a correction, but Europe is still in the early stages of its recovery. European financial institutions, which some investors are avoiding out of fear of another sovereign debt crisis, could be one of the best value buys going right now.  Citi’s European strategist Jonathan Stubbs is bullish on Europeans banks and other financial institutions, and thinks people should be combining them with a mix of quality assets in the near term.

European stocks expected to be cheap

Comparing the most expensive to the cheapest quintiles, European stocks in general should be cheap for the next 12 months. The money that has been...