You say US interest rates will remain negative in real terms. That must apply to Europe as well
Even more so the current stance of monetary policy is insufficient. Growth is anaemic, inflation is very low. The European Central Bank has been unwilling to buy government bonds and the market does not expect it to do so, but we think it will.
That might give European equities an upward surprise. We’ve been long for two years but it’s become a crowded space. For us to have faith in Europe’s recovery requires the ECB surprising the market with action, not just rhetoric.
Are you long...