Europe 2017: All Alone at the Orphanage
The bottom line is that Europe is cheap, the corporate sector in most cases is running free cashflow while investor sentiment is bearish. A change in the inflation temperature might be the first catalyst to reignite investor appetite. By a process of elimination the European equities score well on valuation although earnings assumptions look a little rich. One lesson learnt from the recent sell-off in US treasuries was the fact that low PE and PB stocks fared very well.