Keep Calm and Carry EWU

 | Jul 23, 2013 | 2:45 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

ewu

,

HSBC

,

vod

,

bp

,

RDS

,

gsk

,

bti

,

deo

,

azn

The more I listen to companies, the more I think that the next hot geographic area is none other than the U.K.

This scrappy nation isn't tied down by the euro and is committed to growth with a smart, new governor of the Bank of England in Mark Carney, who has a honeymoon going that has made an otherwise fractious situation harmonious, and there's no longer any bad will from all of those bank bailouts.

So, how do you play it?

How about with the iShares MSCI United Kingdom Index (EWU)? I am watching the U.K. exchange-traded fund, and when it comes in, I believe it will be a buy. Look at these top holdings:

  1. HSBC (HSBC), the gigantic worldwide bank that is just now coming back to life along with the other European banks.
  2. Vodafone (VOD), which is getting a ton of money from Verizon Wireless while it expands around the world.
  3. I want to own BP (BP) but I would like to own it in a basket in case that crazy court in New Orleans just keeps the BP cash register open to pay -- endlessly -- for its Macondo sins.
  4. You also get what is one of the most bad-going-to-good companies in the oil patch, and that's Royal Dutch Shell (RDS.A, RDS.B). What can I say about this once-slothful company? It's much improved with a good yield.
  5. My charitable trust owns GlaxoSmithKline (GSK), which has been a difficult stock because of the Chinese situation. It's about to report and it has a full pipeline so if it gets hit, it's a buy.
  6. I am not a big fan of tobacco, but British American Tobacco (BTI) is in solid shape, perhaps better than Altria (MO), at least today.
  7. Diageo (DEO) is my favorite spirits company because of its Asian expansion.
  8. BG Group is steady as she goes.
  9. AstraZeneca (AZN) is a dirt-cheap drug stock.

As I wrote yesterday, Europe is in turnaround mode. The country that could benefit the most from that? I'd go with the U.K.; specifically, I'd go with the EWU.

Columnist Conversations

Ford is working on its third straight gain following two days of steep loses to start this week. At this...
Market is holding on for gains for now but think Doug Kass is right and could see some decent profit taking by...
I have a full blown article surrounding the U.S. Retail Sector coming out on soon, but for now let's just lo...
The dividend action is pretty quiet at the moment, but I wanted to point out for those generating income with ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.