Scouring Europe for overlooked value in equities
For the past year and a half, Europe’s economic fundamentals have been recovering from one of the worst financial crises since the Great Depression. To achieve the notable progress Europe has seen since then, significant structural reforms have been introduced in a number of countries. At the same time, the European Central Bank (ECB) has adopted a monetary policy that has featured historically low interest rates and numerous extraordinary measures designed to support investment and growth. So it’s not surprising to my team and me that as economies have recovered, equities have recovered as well. Even so, we don’t believe it’s too late to invest in European equities. As long-term investors, we take a five-year or even longer view on European equities. That being the case, we think this is still very much a good time to invest.