As Europe appears to turn a corner economically, experts at Russell Investments believe European equities may provide better value versus other non-US developed markets, according to the Russell Indexes.
In addition, dynamic and deep value-oriented investors may have found more investment opportunity in Europe in recent months.
Since the beginning of the third quarter as of August 26, the Russell Developed Europe Dynamic Index has outperformed the Russell Developed Europe Defensive Index by more than 6% and has outperformed the Russell Developed Europe Index by more than 3.5%.
And for the same time period, the Russell Developed Europe Value Index has outperformed the Russell Developed Europe Growth Index by more than 3% and has outperformed the Russell Developed Europe Index by more than 1.5%.
"We are seeing a somewhat friendlier environment for European equities in recent months as the Eurozone emerges from recession. And this has attracted some investors interested in taking on riskier companies and deeper value plays," said Wouter Sturkenboom, investment strategist for Russell Investments Europe.
"However, investors should be mindful that many questions remain in Europe in the coming months, such as potential financial bailouts for Greece and Portugal, political uncertainty in Spain and Italy and the coming German elections," Sturkenboom added.
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By GlobalData