In this investment research report, analysts James Skoggard and Björn Van dijkman evaluate investment opportunities in European equities. Equities that have performed best on a risk-adjusted basis throughout the bull market and should offer the best buying opportunity in the near future if volatility in equity markets persists. On a risk-adjusted return basis, four developed European equity markets, Denmark, Belgium, Sweden, and the Netherlands show the best prospect for future returns, with Denmark being the most undervalued. With the MSCI Europe Index (MXEU) as a benchmark, we evaluate 15 developed European equity markets based on Sharpe ratio, Jensen’s alpha, Treynor ratio, Beta, P/E, and the macroeconomic outlook. Given the recent volatility in equities we believe there is a buying opportunity for high-performing low-volatility stocks.

OpportunitiesInEuropeanEquities.20180305.vF