European stocks look promising as GDP growth perks up, Templeton manager says

Peter Moeschter believes "there is still more upside."

Sonita Horvitch 7 March, 2018 | 6:00PM
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Peter Moeschter, executive vice-president and portfolio manager with the Templeton Global Equity Group at Franklin Templeton Investments, says that European economic growth has finally caught up with that of the United States, but equity valuations in Europe have not.

"Recent valuation metrics, whether it be a price/earnings multiple or a price-to-book-value multiple, confirm that developed Europe equities trade at lower valuations than their U.S. counterparts."

Therein lies the opportunity, says Moeschter. "There is still more upside in European economic growth and the stock market." But there is a need to be cautious, he adds, as not everything in the European equity market is as cheap as it had been for a number of years.

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Sonita Horvitch

Sonita Horvitch  

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