Perspectives Blog

European equities – Should investors care about periphery vs. core anymore?

Dan Ison, Portfolio Manager | January 13, 2014

…ting mix of winners and losers. The best performing markets (all returning more than 33% for the year) were Greece, Finland and Ireland. Of the larger markets, Germany, The Netherlands and Spain were the best performers while France, UK and Italy were the worst. Four years since the start of the Euro Crisis (Greece late 2009), can we finally stop worrying about the periphery versus the core?  Year-to-date performance (in euros) Source: Threadnee…

Global market mid-year outlook

Mark Burgess, Chief Investment Officer, Threadneedle Investments | June 16, 2014

…t to call; certainly Germany and Spain appear to have positive growth momentum, which should put some upward pressure on yields if that momentum remains in train. By contrast, the growth outlook in countries such as Italy and France remains very subdued, which is likely to keep yields low. The lack of growth in France and Italy is worrying given that debt levels remain elevated at a time when inflation in the eurozone overall is very low (just 0….

Quality milestone in the European recovery story

March 17, 2014

…an “amazing” start to the year in Europe. In addition, Adecco, the staffing company, has reported that revenues in the fourth quarter of 2013 rose by 9% in Italy, 10% in Germany, 12% in Benelux and 7% in the UK. Interestingly France was flat, which shows that the strength of the recovery will be unequally distributed. However, from a low base, there is potential for European growth to catch-up with other faster-growing areas of the globe. Politic…

When the QE tide recedes, focus on what is revealed

Robert McConnaughey, Director of Global Research | January 6, 2014

…far from a universally positive outlook. While we are seeing signs of improvement on the margin, there is divergence between the fortunes of the most proactive reformers such as Spain and the UK and the foot-draggers such as France. However, unlike the U.S., aggregate profit margins are well below prior peaks and valuations remain fairly forgiving, leaving room for upside against that backdrop of lower expectations. Japan, having suffered throug…

Global Asset Allocation Outlook (as of February 24, 2014)

Columbia Management Global Asset Allocation Team, | March 10, 2014

…underweight to neutral, but maintained an underweight to small caps given their elevated valuations in relation to large caps. European countries presented a slightly different picture with core economies such as Germany and France deteriorating, while those on the periphery of the continent improving. Overall, the eurozone declined somewhat on our scorecard as earnings growth weakened. Ever since the speech by European Central Bank President Ma…