Investors have given up on European assets, which now suffer exceptional discounts to US ones. However, tighter US fiscal policy, the end of Europe’s austerity and deleveraging, the LNG Tsunami about to hit European shores, and the…
Investors focused on the flurry of cabinet nominations in the aftermath of the US election, but the US does not have a monopoly on political drama. France is going through turmoil of its own. This summer’s snap election…
European assets and the euro have become oversold and are likely to rebound. Will this move be nothing more than a dead cat bounce leading to more weakness?
Economic expectations for Germany and the Eurozone disappointed, with the November ZEW decreasing to 12.5 from 20.1. The assessment of current conditions also worsened, implying the sentiment rebound from September will not be…
This week, we update our Central Bank Monitors (CBMs), that help us calibrate how monetary policy should be adjusted in developed-market economies. Our conclusion is that while overall, easier monetary settings are required, there a…
As the odds of a Trump victory rise, European assets underperform US ones. What would be the immediate impact of a Trump victory on European stocks?
The global political system is destabilizing and the US will turn more hawkish in foreign policy, trade policy, or both, regardless of the election outcome. Tactically go long the dollar.
Germany’s problems are well known: Demographics, Chinese competition, underinvestment, energy dependence, and constrained fiscal policy. Our European Investment Strategy colleagues believe this bad news is priced in…