Is it time for unloved European equities to turn a corner?

Value stocks present 'rich stream of alpha'

Chris Hiorns of EdenTree Investment Management

Chris Hiorns of EdenTree Investment Management

In recent years, European equities have lagged other developed markets. While US companies have roared Stateside, European stocks have failed to catch fire.

A combination of uninspiring numbers and macro gloom has weighed heavily on sentiment. But as the US market moves deeper into late cycle territory, selective low valuations and attractive yields are making Europe increasingly attractive.  There has been a dual headwind for fund flows into the continent. Global active investors have been typically underweight Europe and ETF flows have been subdued. While superficially the European market looks well priced, a more forensic analysis tells a different story. Confronting Europe's elephant in the room While bond proxy consumer tit...

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