Major European companies have been discounted because of negative investor sentiment about economic prospects for the European Union (EU). As a result, strong companies with high growth potential appear undervalued relative to their U.S. counterparts.
There are three macroeconomic factors throughout the EU that should help those companies realize their growth potential and achieve higher valuations:
- A historically weak euro, which could help boost European exports;
- Accommodative monetary policy that’s expected to stimulate the European Union’s economy; and
- Labor market reforms that may lower costs, potentially enhancing productivity and corporate profitability.
Read about the case for considering investments in European equities or check out the infographic, and learn more about OppenheimerFunds and The Right Way to Invest.