2015 Investment Outlook: Global equities and the opportunities within the challenges of Shariah Investing
As bottom-up stockpickers, we believe that while it’s important to look at macroeconomic data points from a particular country or region, it’s even more important to examine each sector and individual company to determine various drivers of earnings. As we look back on 2014 generally, it’s clear that European equities have not been amongst the market darlings. Valuations in the eurozone are among the cheapest in the world today, a result of the European financial crisis a few years ago and the generally risk-averse investment community, which has had a tendency to shun Europe over the past year on the back of generally poor economic fundamentals. However, many European corporations remain relevant and competitive globally, with geographically diverse revenues and high operating leverage. Compared with its developed market peers, Europe also maintains the broadest scope for additional monetary and fiscal stimulus. Therefore, Europe is an area of focus for us and a place where we are currently seeking out bargains.