European Equities Moving From Rally to Retreat for Some Analysts

The video discusses the recent performance of European equities, highlighting a significant rally driven by factors like a dovish Fed and optimism about a US-China trade deal. However, concerns about the trade talks and underwhelming earnings growth are causing a market retreat. Patrick Armstrong shares his insights, suggesting that while European equities are a contrarian play, they still offer good value, particularly in sectors like integrated oil companies and French banks. Despite meager growth, Europe is not expected to enter a recession, and the investment strategy involves holding positions without actively buying or selling.

What has been a significant factor in the recent rise of European equities?

• Optimism about the US-China trade deal

• High earnings growth in Europe

• Increase in oil prices

• Strong US dollar

What is Patrick Armstrong's stance on buying European equities?

• He has stopped buying since early January

• He is neutral and undecided

• He is actively buying more

• He is selling all European equities

Which sector does Patrick Armstrong mention as still being a significant overweight in their portfolio?

• Technology

• Integrated oil companies

• Consumer goods

• Healthcare

What is the expected growth outlook for the eurozone according to the final section?

• Strong growth

• Recession

• Meager growth

• Rapid expansion

What is the current strategy regarding the European equities rally?

• Holding a neutral position

• Aggressively buying

• Actively selling

• Fading the rally slightly