Alan Kohler - Europe
I’ve been on about this for a while on theconstantinvestor.com, but the jury is now back: for the first time in living memory Europe’s economy is now the best performing big one in the world.
What’s more, the Australian dollar has fallen 5% versus the Euro this year while rising 5% against the weaker US dollar, which means Aussie companies that are exposed to Europe are getting a double tailwind – economic growth and currency translation benefit.
And with European politics becoming more stable while America’s gets messier and messier, Europe’s outperformance versus the rest is likely to keep going for a while.
Note that CSL, a big European business, has massively outperformed the ASX200 this year to date – +33% versus -1%.
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