Misperceptions generate opportunities for European equities in 2017 with projected growth, political reform and evolution of the European Union ahead. Invesco’s Jeff Taylor, Head of European Equities remains positive compared to many in the market.
Europe — whether including or excluding the UK and whether from an investment or a political perspective — is by definition complicated and often confusing, especially for people from other parts of the world. European equities have had a volatile 2016, pulled around by investor concerns around growth, the banking system, politics, deflation and earnings. As so often with this asset class, the market’s perceptions can be out of synch with what is really happening on the ground. When the continent’s complications cause the kind of outflows from European equities seen in 2016, and European equities become as unloved as they appear to be now heading into 2017, there can, conversely, be significant opportunities to exploit for investors like us who are willing to take a long-term view and overcome the vagaries of market noise.