Why should investors still consider Europe?

10/10/2018

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In this video update, Alex Crooke, Co-Head of Equities, provides a broad overview of global equity markets and reflects on the chances of markets rebalancing following significant US market outperformance. Alex also examines some of the issues facing Europe, including Brexit, and why equity investors should still consider the region.  

Key takeaways:
  • Despite global challenges – trade tariffs, inflationary concerns and rising US interest rates – robust economic activity is providing a decent backdrop for corporate earnings
  • Following recent US market outperformance a rebalancing is more likely to come from a re-rating of European markets on the back of increased confidence in international (ex US) earnings
  • European equities appear attractive in valuation terms, notably energy, materials and financials, helped by ‘easy’ monetary conditions in the region

Glossary

Re-rating - Occurs when investors are willing to pay a higher price for shares, usually in anticipation of higher future earnings.

Video recorded on 5th October 2018 

 

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

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