jaedi

Attractively Valued International Dividend Stocks

Watch out for Allied Irish Banks. Although AIB is relatively well managed, Irish financials in general have far more to fall before they reach a floor. Irish banks balance sheets are full of toxic assets. In Ireland they don't call it subprime but mortgages were given at ridiculous multiples of gross salaries for property that was over-valued to a much greater extent than in the US. Undeclared credit union (i.e. savings & loans institutions) are used by property buyers to pay for deposits which drives up the effective salary multiple even more. They are also over-exposed to property developers who have speculative holdings in agricultural land priced at over 7 times the average European value. Construction has collapsed across the board and the banks will be left holding worthless loans to bankrupt property developers. A silver lining is their ownership of a large Polish bank and other assets in Eastern Europe.