Page 74 The Dispatch/Maryland Coast Dispatch September 20, 2013 MONEY SENSE Europe’s RecoveryConsidered Good News For Investors OCEAN CITY – “Going global” has never been more important when it comes to investing. But in recent years, even as many investors have looked overseas for growth, one key area of the world has continued to cause turmoil in the markets. Since 2010, Europe’s economic woes – from a banking meltdown in Cyprus to dispiriting unemployment figures out of Italy and Spain – have caused many to wonder if the eurozone can continue to hold together. But a wider crisis does not appear to have materialized, and now the continent is starting to show some genuine signs of resilience, according to BofA Merrill Lynch Global Research. The fact is that Europe remains an integral part of the world economy. The 17 nations of the eurozone still account for nearly 14 percent of the world’s gross domestic product (GDP). If you include the 10 other European Union countries that have not adopted the euro, you have an economic powerhouse representing almost a fifth of global GDP, according to business-research association The Conference Board. And as this beleaguered continent begins to repair itself, new investment opportunities may already be emerging. The European Union’s ties to the U.S. have always been close. They risk, consider somewhat smaller remain each other’s most important companies in sectors – including conmarkets, generating some $5.3 trillion struction, utilities and telecommuniin commercial sales each year, ac- cations – that sell directly to Eurcording to a 2013 study by the Center opean markets. for Transatlantic Relations. One unexpected area of Eurozone banks, meanwhile, potential amid the continent’s own more than $1 trillion in financial woes is the banking U.S. assets, and as of 2011 sector – specifically, large EurEuropean-owned companies opean banks. The top seven operating in the U.S. accountEuropean banks control 79 ed for some 3.5 million jobs. percent of the total market And while China is the U.S. capitalization in this sector, government’s largest creditor, and they remain attractively Europe ranked a close third in priced compared with major November 2012, holding 20 BRIAN SELZER U.S. banks. There has been percent of all U.S. Treasury securities concern, however, about the lack of – compared with 21.2 percent for resolve to shut down bad banks, parChina and 20.7 percent for Japan. ticularly in southern Europe. While in recent years turmoil in EurEurope’s built-in disparities – beope has added to volatility in the U.S. tween the strong countries and the markets, a strengthening U.S. econo- weak ones, between optimism and my may very well help bring stability pessimism – seem likely to continue to Europe. to perplex analysts and strategists as If you’re interested in gaining they take stock of the continent’s exposure to Europe but wary of risk, near- and long-term outlooks. But the you might consider large European fact remains that the continent has corporations with recognizable global too many built-in advantages to be brands in everything from cars to air- ignored, and as it starts to show signs craft to consumer products. But pre- of recovery, potential opportunities cisely because of their relative stabil- could develop quickly. ity, those stocks are already expenConsidering just how important sive. What’s more, a chief selling Europe is to the U.S. and the rest of point for the multinationals now – the global economy, that qualifies as their comparative lack of dependence good news. on the European consumer — means – Brian Selzer they stand to gain less than other Special To The Dispatch companies with the return of con(A Merrill Lynch Wealth Managesumer confidence. ment Advisor who can be reached at 410If you can handle slightly more 213-8520.) RACETRACK AUTO SALES We Buy Like-New And Used Cars, Trucks, Trailers WE PAY CASH! (410) 641-4600