Is Europe a Value Trap or a Buying Opportunity?

European stocks remain plagued by high political uncertainty and economic problems leading to successive downgrades of growth expectations for the region

Clémence Dachicourt 20 February, 2019 | 8:22AM

Louvre Paris France are European equities undervalued stock picking

European equities have consistently underperformed global equities – this holds true over 10, five, three or even one year. They continued to lag during last’s month rally so you could categorise them as a value trap.

Having said this, a lot of negativity seems to be priced into the asset class which has suffered from massive outflows. This has resulted in current exposure levels that are only slightly higher than those seen during the Eurozone crisis. 

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About Author

Clémence Dachicourt  is Senior Portfolio Manager for Morningstar Investment Management

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