Will this year’s strong performance in European equities continue in the year to come? While there are potential headwinds for the recovery, there is also an argument these risks are sufficiently priced in and this European rally is just getting underway.
Earlier, we discussed how positive trends in the European economy showing domestic growth are leading the eurozone, while global trade has been one of the weak points. What could be a good way to position toward this local economic recovery?
Confidence is a key to economic growth. At WisdomTree, we closely watch the European Commission’s Economic Sentiment Indicator, which is a timely composite measure of business and consumer confidence in the region. The recent increased confidence has been a tailwind to the consumption growth, and the latest readings suggest the trend might continue.