BlackRock Strategist Sees Room to Grow in European Stocks

The video discusses the valuation and growth prospects of European markets, comparing them with US stocks. It highlights the role of ECB policy, consumption, and unemployment in driving European growth. The underperformance of European markets is analyzed, considering factors like unemployment and fiscal policy. The impact of political risks on bond yields and ECB policy is also explored.

What is one of the reasons for the improved growth momentum in Europe?

• Decreased consumer spending

• Increased political instability

• Improved earnings prospects for European corporates

• Higher unemployment rates

How does the valuation of European stocks compare to the S&P 500?

• European stocks are more expensive

• S&P 500 is cheaper

• European stocks are cheaper

• Both are equally valued

Which factor has contributed significantly to the growth of European markets?

• ECB's accommodating policy

• Political instability

• Rising unemployment

• Decreasing household earnings

What is a major concern regarding the underperformance of European markets?

• Overvaluation of stocks

• Excessive fiscal policy support

• High unemployment rates

• Lack of political risk

What could potentially cause periphery bond yields to rise?

• Increased ECB support

• Political stability

• ECB pulling out of the market

• Decreased political risk