Goldman: Europe’s Stocks to Return Double U.S. Equities in 2017
- Europe to return 8% this year as election uncertainty lifted
- Goldman is underweight U.S. stocks over 12-month horizon
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European equities will catch up to their U.S. peers once the uncertainty surrounding near-term elections is lifted, according to Goldman Sachs Group Inc.
The Stoxx Europe 600 Index will return 8 percent including dividends by end-2017, boosted by a weak euro, strong global growth and recovered oil prices, according to Christian Mueller-Glissmann, managing director of portfolio strategy and asset allocation at Goldman Sachs in London. The S&P 500 Index will return 4 percent, Goldman predicts, as optimism about economic growth in the U.S. fades and mutes the stock rally. The return forecasts are in local currencies.