Europe well placed to deal with any market surprises

European markets have enjoyed another sparkling year, the fourth in succession where returns have been very close to or exceeded 10%. Last year took many by surprise and those who contend that European economic strength is at best fragile have again been confounded. So, with the benefit of hindsight it is interesting to look back at what has worked and where the surprises have come from, perhaps giving some guide as to what lies ahead in 2007. The most important bridge between 2006 and 2007 is the strength and likely surprise of European economic growth. At the start of 2006 the target of...