Why investors need a 'value over growth' approach to Europe

Europe's run of poor manufacturing and trade data continued in June.

PMIs across Germany, France and Italy came in below expectations last week and German factory orders of -8.6% year-over-year caused concern that trade friction might spread to the domestic economy. Eurozone government bond yields went further negative amid concerns over slowing growth, lower inflation expectations and overall 'Japanification' of Europe. Bond proxies and quality growth responded favourably to lower discount rates and the potential for stimulus. Should investors care about European equities? However, high asset prices and the prospect of deflation are uneasy bedfe...