Strong European firms contrasting with over-leveraged governments

EUROPE

Many investors looking into Europe see a Continent in crisis and are wary of committing to any euro assets.

While most governments struggle with fiscal deficits and debt levels, the corporate sector is in remarkable health given the recent deep recession. Our meetings with company management and analysis of relevant factors show the future is positive for many European companies. Indeed, the current government crisis has actually lowered the price at which investors can purchase these attractive equities. The contrast between European governments and domiciled corporates is interesting. Governments have growing welfare budgets with populations ageing and unemployment at high levels. There i...