The Reality of Investing in a Misunderstood Europe

MAY 01, 2017
http://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2017/05/CI110104425.JPG"
http://www.investmentnews.com/assets/docs src="/wp-content/uploads2017/05/CI110095425.PNG"
George R. Evans, CFA Chief Investment Officer, Equities, Portfolio Manager
Investors' perception of the opportunity in European equities has been clouded, but in reality we believe the region is an exciting place to invest. The currency weakness that affected recent European stock performance is, in our view, a short-term story and should not influence one's investment approach. Additionally, we hold that developed international indices are a poor representation of Europe's future value and require an active manager to provide exposure to higher potential growth areas of the economy. Despite recent setbacks, the European market's strengths, including its many innovative companies and brand leaders, make it a compelling long-term investment opportunity. We point to four key characteristics that make it so:
  1. Market size: Europe remains the second largest investment region in the world. Europe will continue to provide a liquid platform for investors to access equity investments. It's a market that encourages shareholder friendly practices and business growth.
  2. Strong brands and businesses: Many valuable brands and companies call Europe home. Europe is the leader in many innovative industries and home to many brands with a high degree of loyalty. These companies offer a compelling investment opportunity through all market environments.
  3. A currency boost for exports: Weak currencies are good for exports. Europe is a major trade partner for the United States and the emerging markets. Following three years of a sharp devaluation in the euro and pound, European goods and services have become cheaper for foreign countries.
  4. Improving economic data: Key economic data have been improving for several years and by the end of 2016 were back above pre-recession levels for most major European economies.

Learn how we challenge perceptions with Oppenheimer International Growth Fund, visit challengetheindex.com/oigyx


More From OppenheimerFunds:

Foreign investments may be volatile and involve additional expenses and special risks including currency fluctuations, foreign taxes and political and economic uncertainties. Eurozone investments may be subject to volatility and liquidity issues.

These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.

Carefully consider fund investment objectives, risks, charges and expenses. Visit oppenheimerfunds.com or call your advisor for a prospectus with this and other fund information. Read it carefully before investing.

OppenheimerFunds is not affiliated with Investment News.

&Copy;2017 OppenheimerFunds Distributor, Inc.

Latest News

In an AI world, investors still look for the human touch
In an AI world, investors still look for the human touch

AI is no replacement for trusted financial advisors, but it can meaningfully enhance their capabilities as well as the systems they rely on.

This viral motivational speaker can also be your Prudential financial advisor
This viral motivational speaker can also be your Prudential financial advisor

Prudential's Jordan Toma is no "Finfluencer," but he is a registered financial advisor with four million social media followers and a message of overcoming personal struggles that's reached kids in 150 school across the US.

Fintech bytes: GReminders and Advisor CRM announce AI-related updates
Fintech bytes: GReminders and Advisor CRM announce AI-related updates

GReminders is deepening its integration partnership with a national wealth firm, while Advisor CRM touts a free new meeting tool for RIAs.

SEC charges barred ex-Merrill broker behind Bain Capital private equity fraud
SEC charges barred ex-Merrill broker behind Bain Capital private equity fraud

The Texas-based former advisor reportedly bilked clients out of millions of dollars, keeping them in the dark with doctored statements and a fake email domain.

Trump's tax bill passes senate in hard-fought victory for Republicans
Trump's tax bill passes senate in hard-fought victory for Republicans

The $3.3 trillion tax and spending cut package narrowly got through the upper house, with JD Vance casting the deciding vote to overrule three GOP holdouts.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.