Global Focus: Market & Economic Outlook

Discovering Risks and Opportunities Related to International Markets and Economies

Wells Fargo Advisors' international strategy team travels the world seeking insight into the global economic and market environment and to determine whether certain regions of the world may offer opportunities for investors.

Can Europe Lead the Recovery?

The Eurozone May Deserve Investors’ Attention

The impact of the 2008 global financial crisis was felt everywhere. But then the Eurozone was hit with its own financial crisis that lasted from 2009 to 2013, helping make matters there even worse. Through it all, the region proved its resilience, and today things are looking up. Now the question for investors is whether the Eurozone can lead the global recovery.

In early autumn, Paul Christopher and Sean Lynch, Wells Fargo Investment Institute global strategists, visited strategists and economists, government officials, and private companies in Spain, France, and Italy in search of an answer. What they discovered is now available to investors in the “Can Europe Lead the Recovery?” report. Key points covered include:

  • An economic recovery has taken hold in the region and appears to be gaining in 2015.
  • Healthy bank balance sheets, European Central Bank (ECB) bond-buying, and improving credit demand are sparking bank lending.
  • Badly needed labor-market reforms are occurring in many countries.
  • European stocks’ strong dividend yields may deserve greater attention from U.S. investors.
  • The euro may continue to gradually depreciate in 2016, making Eurozone exports cheaper and attracting more tourism.
  • Although the situation looks promising, the region continues to face a number of risks.

Download the Report (PDF)

The opinions expressed reflect the judgment of the speakers as of the recording date and are subject to change without notice. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results. Additional information is available upon request.

Yields represents past performance. Past performance is no guarantee of future results. Yields may be lower or higher than that shown. Yields will fluctuate as market conditions change.

Foreign investing involves greater risks than those associated with investing domestically including political, economic, currency and the risks associated with different accounting standards. Bonds are subject to interest rate, price and credit risks. Prices tend to be inversely affected by changes in interest rates.

Outside the U.S., the attitude toward dividends is different. Companies in the U.S. generally pay dividends every three months and are less likely to cut their dividends. Foreign companies normally pay dividends semiannually or annually. Dividends are not guaranteed and are subject to change or elimination.

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