European Game Changers

If the individual global economic areas were viewed as stocks, Europe would probably be the most attractive over the next five years. The internal diversification is extremely high: a wide variety of services and products with different business models, including a certain degree of currency diversification. In addition, several long-term catalysts have emerged in recent years: Global crises have led to a significant increase in investment sums as well as the fundamental willingness to invest. Dependencies on China and the USA are to be reduced, which in turn creates space and, above all, demand for in-house solutions. At the same time, the USA is losing more and more financial confidence worldwide, with the result that Europe is increasingly coming under the spotlight and European currencies (EUR, CHF) are also benefiting against the dollar. At the same time, Europe has not experienced any major multiple expension in recent years, meaning that many European equities are also fundamentally more favourable. By Europe I mean the geographical area of ‘Europe’ excluding Russia. The receipt and reinvestment of dividends are also a core aspect of the strategy.