Weaker Europe Creates Buying Opportunities

For value investors in Europe, the bear market conditions may have finally triggered a revival in sectors such as telecoms and utilities

EdenTree 29 January, 2019 | 12:43AM

This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Chris Hiorns, manager of the Amity European fund at EdenTree Investment Management, looks at opportunities in Europe.

The recent shift in European investors’ attitude from optimism to pessimism has been rapid, but it is now creating some compelling entry points for long-term investors.

A number of factors have weighed on the region in recent months. Major European manufacturing and construction Purchasing Manager Index data disappointed, which in turn led to a lower economic growth outlook. Neither did Europe escape the sell-off which has unsettled global equities markets since the end of September.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Banco Santander SA2.17 EUR0.00
Cie Generale des Etablissements Michelin SA91.20 EUR0.00
Compagnie de Saint-Gobain SA31.50 EUR0.00
Deutsche Telekom AG14.77 EUR0.00
Imerys29.66 EUR0.00
ING Groep NV6.07 EUR0.00
Koninklijke KPN NV  
Orange SA10.41 EUR0.00
Randstad NV40.09 EUR0.00
Smurfit Kappa Group PLC2,438.00 GBP0.00
Telefonica SA4.00 EUR0.00

About Author

EdenTree  is an investment management firm with a focus on ESG investing

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