Is there any value left in Europe?

Investors have become more pessimistic about both the European and the US economic outlook in recent months, yet stock markets have pushed on to new highs. Some would argue that this is a worrying divergence. We would take the opposite view. This appears to be classic bull market behaviour. A wall of worry has been rebuilt and stock market resilience should be taken as a sign of strength. The market is discounting an improving economic outlook ahead, particularly in the south of Europe. The first quarter’s GDP data in Europe was mixed. Spain and Germany were a little better than expec...