What are your expectations for the European market in 2015? I think they'll go up. The lower price of oil should help most of the European economies, which seem to be on the rebound anyway. Banks and Investment Funds seem to be flush with cash as well, and that money is going to have to go somewhere, and it often does so on the stock market.
I think Germany will do fine, but I think Italy and Spain still have problems ahead of them... and Greece and any companies heavily dependent on it should be avoided. I like Germany right now because I think they are getting beat up a little too much for their neighbors, and their economy isn´t nearly as bad.
In general I'm not optimistic about Europe, some countries could do well but I'm already doing my best to limit my "Europe risk"
I think I'll be more optimistic in the second half of the year, but current volatility associated with the Swiss National Bank actions aren't helping. I think the broader sentiment in the region remains pretty uncertain at the moment. We'll see how Greek elections play out.
I'm still not very positive with Europe. They went into recession much earlier as compared to the United States and they are not showing any signs of recovery. Majority of business have also pulled out from Europe and are seeing more profitability in Latin America or Asia. I think this is one thing that will continuously affect the economy in Europe and it will take some time before they regain the trust of investors.
IF they regain the trust of investors. There are always those who like to speculate on the short term but I find it really hard to find reasons to invest in European companies in the long term. If we look at the past, taxes have only been getting higher and higher and regulations have become stricter and stricter. Both of these have a huge effect on the bottom line. While jobs are moving away from Europe the average consumer will also have less money and thus will spend less... top line of the companies which focus on consumer goods will also start to suffer. In short: Smart, rich and productive corporations are escaping Europe. So are smart, rich and productive individuals. Europe just doesn't have the right mindset for corporations to thrive in.
