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
Facebook Twitter LinkedIn

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Brandes European Value I GBP35.44 GBP0.43Rating
Fidelity European Dynamic Gr Y-Acc-EUR32.84 EUR0.02Rating
Jupiter European Growth I EUR Acc68.37 EUR-0.19Rating
M&G Pan European Select GBP I Acc2,610.09 GBP-0.35Rating

About Author

Natalia Wolfstetter  ist Director Fund Analysis bei Morningstar