Attractive growth stories

ON EUROPE

In August, the financial crisis finished its fifth year. Everything seems to be marginally better than before thanks to the common efforts and commitments of the euro area and the ECB.

After the stock market fall in summer 2011, European equity markets have strongly recovered on aggregate. Materials, banks and utilities however are still trailing behind, with consumer staples, healthcare, consumers discretionary and insurance leading the rally, a fact that hints to a demand-driven upswing. While equity markets have appreciated in silence, there is continued talk of economic weakness. People fear that more stimulus is needed with companies proving fragile as earnings growth slows. The common thesis is equity markets might simply anticipate further central bank act...