Where are the investment opportunities in Europe?

As we begin 2017, the technical picture for the European market is encouraging having recently entered an uptrend. Levels of corporate aggression are relatively low, which is a further positive.

We find that when companies are over-investing to support ambitious growth targets, it is often a leading indicator of poor subsequent share returns, but there are few signs of this currently.  While some behavioural evidence of investor complacency suggests we should not be overly bullish, we are certainly looking at a more positive set of variables than at this time last year. Why markets are too pessimistic on Europe In 2016, the weakness of sterling relative to the euro put a positive gloss on returns for UK-based investors, transforming a 2.4% return from the MSCI Europe ex-UK...