Please provide compelling reasons to invest in European stocks

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Please provide compelling reasons to invest in European stocks

Hello! Thanks for your question about compelling reasons to invest in European stocks. The short version is that there are signs that suggest that the euro zone economy is growing at a fast rate, much faster than the US. According to research from Bank of America Merrill Lynch, in 2017, investors moved $13.7 billion to European funds. Annalists believe that European stocks are getting pricey, but they will still benefit from earnings. Below you will nd a deep dive of my ndings.

COMPELLING REASONS TO INVEST IN EUROPEAN STOCK

Over the past eight years European stocks have delivered less than half the total return of US equities, but according to Barron's now they are starting to outperform. Data from MarketWatch, Inc. shows that the Stoxx Europe 600 Index is up 9.6%.

Barron's believes that there are reasons to favor European stocks over US stocks. These include lower valuations, greater operating leverage, robust GDP growth, and earnings growing at nearly double the rate for U.S. corporations. French bank BNP Paribas S.A. is in the beginning stages of improving profits. Its stock is cheap at 88% of tangible book value and a price-earnings ratio of 11.

Bloomberg states that ETFs and European equity funds had a record net inflow of $6.1 billion on May 10. In the meantime, the US had an outflow of $2.4 billion. According to Marketwatch, at the moment there are many ways to invest in Europe. These stocks are available through a brokerage account that trades US stocks and ETFs. Five reasons for embracing European stocks are recent outperformance, earnings and sales growth, valuation, the Brexit bounce, and long-term gains and diversification.

CNBC states that although political risks still exist in Europe, there are signs that suggest that the euro zone economy is growing at a fast rate, much faster than the US. According to research from Bank of America Merrill Lynch, in 2017, investors moved $13.7 billion to European funds. Annalists believe that European stocks are getting pricey, but they will still benefit from earnings.

With the victory of Emmanuel Macron, the euro and European equities became more attractive. Currently, in European countries, wages are rising, unemployment is falling, and credit conditions are becoming better. According to Forbes, reasons why European stocks are rising include bond yields, credit demand and manufacturing, the low price of stocks, and the fact that Europe has recently outperformed the US.
CONCLUSION

To wrap it up, there are signs that suggest that the euro zone economy is growing at a fast rate, much faster than the US. According to research from Bank of America Merrill Lynch, in 2017, investors moved $13.7 billion to European funds. Annalists believe that European stocks are getting pricey, but they will still benefit from earnings. Thanks for using Wonder! Please let us know if we can help with anything else
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