The Reality of Investing in a Misunderstood Europe

MAY 01, 2017
https://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2017/05/CI110104425.JPG"
https://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

Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale
Stratos Wealth Holdings closes 11 acquisitions in push for advisory scale

RIA aggregator adds $4.8 billion in client assets across seven states as demand grows for alternatives to traditional succession models.

Beyond wealth management: Why the future of advice is becoming more human
Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up
Shareholder sues FS KKR Capital board, alleges NAV and dividend cover-up

Shareholder targets FS KKR Capital's directors over alleged portfolio valuation and dividend missteps.

UBS loses $1.2 million arbitration claim linked to variable annuities and margin
UBS loses $1.2 million arbitration claim linked to variable annuities and margin

UBS has a history of costly litigation stemming from the sale of volatile investment products.

'We are monitoring the situation,' SEC says of private funds
'We are monitoring the situation,' SEC says of private funds

New director David Woodcock puts firms on notice over fees, conflicts, and liquidity risk as private credit shows signs of stress.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline