Europe a beacon for equity bargain hunters

We report today about how some value investors have been quietly shopping around Europe for some bargains. Analysts say the rally in European shares was sparked in late December by the European Central Bank's move to begin a major quantitative easing program (known as the long-term refinancing operation, or LTRO). The lows among Europe-based ETFs actually came in October, along with the rest of the global markets. The ECB's action has strengthened the rally among some European markets. It's interesting that as European leaders hash out the latest Greek rescue deal, a confidential report about Greece showed some serious doubts about whether the latest aid proposal will work. The report was prepared by officials at the ECB, IMF and the European Commission, and was leaked last week. The report didn't seem to have much impact on the European markets. Continued strength in the face of bad news might indicate that the worst is over for European shares. One never knows for sure, of course. But one thing seems pretty clear: Fund managers are prepared to invest more in Europe if values remain.