The path ahead for Europe's periphery

In recent years, investing in Europe's periphery has often lead to very binary outcomes. Argonaut Capital's Greg Bennett explains how the region is cleaning up its act.

At economic inflection points, analysts' forecasts are seldom accurate, and company management is equally conservative and behind the curve. This means there is significant scope for earnings upgrades and positive surprises. It also means that the ‘e' in the P/E ratio for the periphery is misleading, which is why, contrary to some market commentators, the periphery is far from fully-valued or expensive. Binary outcomes The most significant challenge to our bullish positioning in Europe's peripheral stock markets is these are marginal assets. With these markets, the success of the i...