Draghi's famous "bumblebee" speech and the creation of the Outright Monetary Transactions (OMT) program were landmark events in the management of the euro crisis as they helped remove systemic risk in Europe and, as a consequence, made European assets investable again.
From an economic perspective, Europe is showing signs of a tentative economic recovery. From an equity market perspective, we believe these improved fundamentals increase the likelihood of an inflection in European corporate profits toward positive growth. The past 12 months were about the revaluation of European equities from distressed levels, while the next 12 months will be more about a recovery in profits also driving positive returns further.
We want to focus on the European economic recovery, as this could be the catalyst to reverse some of the multi-year underperformance of European stocks.
Read more: Better European economy bodes well for stocksFinancial Services - Zawya
From an economic perspective, Europe is showing signs of a tentative economic recovery. From an equity market perspective, we believe these improved fundamentals increase the likelihood of an inflection in European corporate profits toward positive growth. The past 12 months were about the revaluation of European equities from distressed levels, while the next 12 months will be more about a recovery in profits also driving positive returns further.
We want to focus on the European economic recovery, as this could be the catalyst to reverse some of the multi-year underperformance of European stocks.
Read more: Better European economy bodes well for stocksFinancial Services - Zawya
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