Weekly Commentary - Factors to support European equities
Investors see opportunity for European equities as Euro zone economy stabilizes. After Euro zone debt crisis, euro zone economic growth was flat, but it has been getting better. Recent survey data suggest the euro zone may be edging out of a recession, more investors consider to weight on European stocks.
There are 3 factors to support European equities from investors’ eye, although the Continent economy hasn’t had a big change.
Reasonable Stocks price
European stocks are relatively inexpensive and European companies generate plenty of cash. In short, Europe’s economy will stabilize, and it is good for European companies to develop bigger.
Less besetting by Government debt problem
European companies, especially some famous international brands, aren’t beset by Government debt crisis. Generally, those brands have good sales in foreign market, especially emerging markets.
Less panic in debt crisis
Over two years, although the debt continues, it hasn’t recently caused acute panic. Investors seem used to the crisis, and it is less hit to stocks price.
To conclude, we regard European economy may not be on the track of recovery in short term, but its stocks is attractive. We will keep looking for new opportunities in Eurozone.
Copyright ©2015. Alroy Financial Services Limited. All rights reserved. Member of Hong Kong Professional Insurance Brokers Association. Membership No. M-437. |
Follow Us: Show: Full Site | Mobile site |
|
The information of this page is for reference only; it does not constitute any selling purpose, solicitation of buying and recommendation for you to participate and complete any transaction. |