From Dr. Steve Sjuggerud, Editor, True Wealth Systems:
At the start of this year, you would have earned just 0.63% interest on 10-year government bonds in Germany…
Sounds bad, right? It gets worse…
Today, these bonds pay just 0.18% interest. What an extreme! It’s a good thing we’re not retirees in Germany!
Still, this ultra-low interest rate actually creates a different extreme that gives us an incredible opportunity in European stocks…
You see, the “spread” between 10-year German bond yields and the European stock market dividend yield is at an extreme. Based on history, we will likely see big gains in European stocks as this extreme reverses.
Let us explain…
The “spread” is a simple concept. It’s just the current dividend yield on European stocks minus the 10-year German bond yield.
European stocks have never paid higher dividends – relative to the yield on 10-year German bonds – than they…