Europe Stocks Due a Bounceback

A combination of low prices, strong corporate earnings growth and some of the best economic conditions in a decade make European equities an attractive offering

Natalia Wolfstetter 18 June, 2018 | 9:51AM

The European equity landscape makes for compelling analysis. There are political issues, economic inferences, security complications and fundamental considerations that would need a detailed thesis to comprehensively address. Yet, one of the most effective ways to uncover the opportunity on the continent is to apply a basic timeline of European equities relative to the rest of the world.

timeline of European equities relative to the rest of the world

In doing so, the challenges on the continent quickly become obvious – with as much as 30% underperformance relative to global equities since 2015 and closer to 65% underperformance since the peak of the financial crisis in 2008. Driving this has been a plethora of worries, as it wasn’t that long ago that we were questioning whether the European Union could actually fall apart.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Brandes European Value I GBP26.74 GBP-1.13
Fidelity European Dynamic Gr Y-Acc-EUR26.44 EUR-1.72
Jupiter European Growth I EUR Acc52.36 EUR-1.32
M&G Pan European Select GBP I Acc2,048.87 GBP-1.35

About Author

Natalia Wolfstetter  ist Director Fund Analysis bei Morningstar

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