Europe is much less attractive than the US
Europe’s energy supply is under severe pressure, and the 8.9% inflation rate in the eurozone seems to be cushioned only by sharp increases in interest rates, which could push the European economy into recession. Is Europe still the continent you want to be in as an investor?
Although the European economy had a relatively good second quarter, with economic volumes up 0.7% on the first, concerns for the second half of the year remain high.
Top 5: European equities offer value and dividends
While US companies are generally praised for their quality, strong competitive advantages and high growth prospects, European equities are significantly less popular. Although most fund managers seem to have less faith in European equities, they are generally popular with value and dividend investors.
'Recovery fund gamechanger for European equities'
Agreement on the European coronavirus recovery fund could be a “gamechanger” for the European Union, according to Vincent Juvyns (photo). It’s his main reason to be a bit more positive about European stocks again.
The Global Market Strategist at JP Morgan Asset Management is “very impressed” with the European approach to tackle the impact of the virus. Although a final agreement has yet to be reached, the fact that Germany is taking the lead in this strengthens his confidence this will happen soon.