Europe as a place to invest has presented some challenges to clients, who perceive it as inhabited by large unpopular businesses in the energy and banking sector, or very expensive luxury goods stocks.
But as with any investment sector, it pays to do more research and look for smaller businesses in more promising areas, that may have received less attention, and therefore have lower valuations.
Economies in the West are picking up due to lockdowns easing, and may provide a good counterbalance to emerging markets, whose economies are slowing.
But looking for the right stocks is still looking at the fundamentals of the stocks, and areas of economic growth; because of the delays in the vaccine rollout, Europe may benefit from greater growth, because it is behind other regions, at least temporarily, which could mean more investment opportunities.
This article, which is part of Schroders Talking Point, is worth 30 minutes' CPD.Â
