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Podcast: All into Account
Episode: Equity Strategy: What is needed for Eurozone to start outperforming again? We stay OW Growth vs Value
Description: Speaker: Mislav Matejka, CFA - Head of Global Equity Strategy
The last positive spell for Eurozone was between Sept ’22 and May ’23, when it outperformed S&P500 by as much as 32%, in USD terms. We cut Eurozone to UW in early May of last year, and the question is what can help Eurozone to deliver another leg of outperformance. It certainly screens cheap vs the US, at a 15% greater discount than typical on a sector-neutral P/E metric, and is likely underowned, as seen in 40 weeks of outflows over the last year. A more constructive China backdrop would defi...