Euro stocks are best bet
As the Eurozone’s economy recovers, investors could find the stock market a good opportunity to benefit from low value priced shares.
Economic growth in the region, led by the large German economy, rose by 0.3% in the second quarter of this year, signifying the end of the long recession.
While economic growth does not always correlate to movement on the stock market, investors betting on a continued recovery in Europe during the coming months have been taking advantage of the low stock valuations, increasing market performance and demand for European equity.
Catching up to the US market is the next target for Europe, and the private bank Coutts has predicted that this could happen within the next six months.
The interest of global fund managers in European stocks has also risen significantly, showing confidence in European stocks, although it is a brave move as other professional investors remain worried about the effect of political instability in the Eurozone.
The position and strength of the Eurozone will become clearer following the elections in Germany and this will have an impact on the future of European stocks.