Barron's Recap: Europe Will Bounce Back

This weekend in Barron's online: the outlook for Europe, 15 cheap stocks in a pricey market, and the prospects for cyber security stocks, Interpublic Group, Global Cash Access Holdings and Hess.

"

" by Jonathan Buck. "Europe's economy has hit bottom, and is taking its first steps toward recovery," begins this cover story. It says the European Union may climb out of recession in the fourth quarter and experience modest economic expansion next year. Recent economic data from Europe have been encouraging. Even Italy, Spain and Portugal are expected to show their first gains in years in 2014, while Germany and the United Kingdom are among those likely to enjoy the strongest gains. Still, Barron's warns, total economic growth could be weak for years and the region faces many potential stumbling blocks. But the chances of a eurozone debt implosion have been reduced signficantly as interest rates have fallen in some of most troubled economies in Europe. See why the global economy would welcome Europe's ability to carry its own weight again, and why one expert sees this as "a significant turning point for equity investors." And see why September 22 is the most important item on the European calendar for the remainder of this year. There still is a lot of work to do, the article concludes, but Europe seems to have turned a corner. The eurozone, those nations with a common currency, has overcome the threat of systemic failure and dispelled concerns about its long-term viability. "In short, Europe will soon be back in business."

"Cheap Stocks in a Pricey Market" by Andrew Bary features 15 big U.S. companies with good prospects and single-digit price-to-earnings ratios. They include

,

,

and others. Reshma Kapadia's "Breaking into Cybersecurity" points out that protection against hacking is one area of technology spending that is booming. See why

and other stocks could climb nicely in this environment. In "A Future Worth Advertising," Jack Hough makes a persuasive case for a rising share price of advertising agency

(NYSE IPG), as it drives up profit margins, pays down debt and returns cash to shareholders.

may be down, says David Englander in "Ready for a Winning Turn," but the provider of cash access products and services for the gaming industry has good prospects and promising new products that just might boost its shares. "Gold Is Regaining Its Glow" by Gene Epstein says that, after plunging to a low of less than $1,200 an ounce recently, gold is poised to rally about 20 percent to $1,550. The article suggests that traders "have not been as bullish since gold prices were under $300." In "Less of Hess Could Be More," Christopher C. Williams shares why activist investor Elliott Associates thinks that

could be worth $126 a share, now that the energy company has given in to pressure to slim down and make plans to repurchase shares. Steve Garmhausen's "Looking to the Past" is a profile of Brad Friedlander of the Angel Oak Multi-Strategy Income fund. See why Friedlander's willingness to reevaluate the past has led the fund beat its peers since its inception. Equity Investment Corp. has piled up more hits than whiffs over the past 25 years by not swinging at stocks outside a defined "hitting zone." So says Barron's article "Investing, Ted Williams–Style" by Lawrence C. Strauss. "Handpicking the Plums" by Alexander Eule offers best advice for avoiding the "perils of overdiversification." Morgan Stanley's Alan Whitman talks about how me selects individual stocks for each of his clients. Penta article "Jacob's Pillow: The Dance in the Dark" offers tips from the dance festival's insiders on the late-summer performances that excite them. In "High-Speed Derailment" by Joseph Vranich and Wendell Cox, the focus is on the California High-Speed Rail project, and how it promised more than it could deliver. "No End to the Games" is an editorial commentary by Thomas G. Donlan in which he discusses how Democrats and Republicans work together to maintain the Senate filibuster.

Columns in this weekend's Barron's discuss: