Fidelity's Morse 'nervous' on European valuations

Little margin for error

Continental European investors have become much more confident and optimistic in recent months and many are now willing to take on more risk in equities, high yield and other markets.

This is understandable given the improving backdrop in terms of the European economy, and corporate earnings, which has been coupled (thankfully) with a quieter period in continental politics.  In the equity markets, it feels like party time. But experience has taught me over the years that it pays not to get too carried away during stockmarket parties - this one will prove no exception.  What makes me nervous today? In short: valuations. Continental European markets have more than doubled (in sterling terms) over the past five years since Mario Draghi's famous commitment to do "whate...