The Eurozone’s Economy

It’s nice to buy stocks at relatively low valuations, but only if they aren’t cheap for a reason. European stock markets may be climbing a wall of worry that’s about to get steeper given a weakening economic and financial foundation, the likelihood that the European Central Bank will opt not to cut interest rates further, and several country-specific fiscal and political problems. Melissa discusses these and other reasons that Europe’s low relative valuations might not be going higher anytime soon. Investors would be well advised to proceed with caution and focus on European stocks with earnings growth rather than just low forward P/Es.