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By Paul Casson, Fund manager, Artemis
- Oils, commodities and banking profits set to rebound.
- Defensive stocks’ earnings are lagging the market.
- European equities trading at a discount to US equities.
At the turn of the year, investors in pan-European equities find themselves in an unusual situation. Nobody is happy with the world of extended quantitative easing and interest rates in many developed markets at zero or below. While these policies have supported asset prices, they have come at a cost: their repressive effect on economic growth.
Yet despite the strange world we find ourselves in, there is a very real fear of change – even if that change represents a move back towards a more normal monetary environment...
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