When investing in European equities, the analysis should start at a company level. This will tell you more about a stock's prospects than examining its sector or even the country in which it is based
In selecting European stocks, it is good to start on the ground with company rather than macroeconomic analysis to produce recommended weightings in each country or market sector. That is not to suggest completely ignoring country and sector analysis. Country effects do still exist in Europe. For example, there is not tax harmonisation within the EU and tax changes can affect competitiveness. Elsewhere, many industries such as electricity producers are also still regulated at the national level rather than Europe-wide. However, specific country effects are less significant as means of gene...
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