Europe: The Good, the Bad and the Overlooked

Morningstar's regional editors give the local view on investment prospects in Europe

Holly Cook 14 November, 2012 | 8:00AM
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When it comes to investing internationally, local expertise and understanding are key to making informed decisions. Media headlines might tell the news, but only the juiciest--or most depressing--will sell newspapers. For a more measured and locally informed view, I recently spoke to several Morningstar editors based on the ground in our offices around Europe to gain an insight not only into the economic outlook but also into how regional investors are feeling about the future.

The Good?
Depending on which European economy you choose to look at, the resultant picture of the region's economic health will be markedly different. Germany, for example, has long been the region's leading economic force, but even this powerhouse is suffering in today's climate. 

"Although Germany is seen as a safe haven by equity and bond investors alike, growth will slow down going forward," says Ali Masarwah, editor-in-chief of Morningstar's Germanic websites. "While the German government--naturally--tends to take a much more optimistic view compared with most economists, even official Berlin forecasts do not expect gross domestic product growth to exceed 0.8% in 2012." 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Banco Santander SA3.31 EUR0.00Rating
Nokia Oyj4.18 EUR0.00Rating
Telefonica SA4.07 EUR0.00Rating

About Author

Holly Cook

Holly Cook  is Manager, Morningstar EMEA Websites

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