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What do you buy? European equities are about 30pc cheaper than the US on a historical price-to-earnings basis, although larger companies, which investors rightly perceive as less exposed to Europe’s problems, are generally at a lower discount. There are some apparent “bargains” in the peripheral countries, such as Greece, Italy and Spain, but the outlook for these countries is uncertain and they may be a value trap.
last-modified: 2021-03-21 08:52:43