Value Investing in Europe
Franklin Templeton Investment Corp. recently shared their value picks, citing the value investing opportunities particularly in Europe. Investment managers of Franklin Templeton encouraged advisors to look for attractive valuations in global equities at the annual Investment Outlook and Opportunities Forum in Toronto, Canada. Investors should look beyond home based investments and look abroad in order to diversify their equity holdings.
In Canada, for example, a strong home bias in your value investment portfolio may lead to a high concentration of the commodity sector. Europe seems to be one of the markets which investors should consider investing into, especially because of the price to earnings ratio. Europe is trading at 30 percent to 35 percent discount to their historic averages. Also, European companies with overall international exposure are performing rather well.