Whenever we decide to put our actual money in a trade we tend to look at what’s happening around us first.

It’s time to look at what the big guys are doing and where they are putting their money. The answer is surprising:  it’s “Europe.”

THE EUROPEAN HUNT

Warren Buffett has been positioning himself since 2012 with an important stake in various European stocks such as Munich Re (Insurance Company in Germany), Sanofi (Healthcare Company in France) and Tesco PLC (Grocery Company in the United Kingdom).

Another big investment company Paulson & Co has recently entered the Greek market by taking a substantial stake in two banks: Piraeus and Alpha.
The recent member to join the European investment club has been Bill Gates with an entry this week in FCC (Construction Company in Spain).

DIVERSFICATION

What is even more surprising is the fact that these big investors are entering different sectors in different countries and not focusing only on one sector or one country. This is very inspiring for the general European economy as they are expressing a clear opinion of a possible full recovery.

HOW TO TRADE EUROPE

For us smaller traders who don’t know the exact stocks in which to invest, we turn to the iShares MSCI EMU Index ETF (EZU), that covers securities in 11 countries and various sectors across the European continent. This ETF has rallied close to 25% in the past 3 months.

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On the Vantage point chart we can see how the Predicted Neural Index has been giving us good opportunities to buy this ETF on pullbacks.

BOTTOM LINE

It is quite obvious that these Gurus have their reasons to believe that the worst may be over in Europe. Therefore, it’s important to keep ETFs like EZU in our portfolio so as not to lose the opportunity to enjoy the European rally.

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