European stocks much cheaper than US

With Stéphane Déo, senior portfolio manager at the French Eleva Capital, we look back and forward to the financial markets. 2024 was a very strong year for American shares. According to Déo, valuations are therefore considerably higher compared to most other regions. According to him, the valuations of American shares are priced for perfection. Expectations are therefore enormous and then there only has to be some disappointing news and the stock prices can take a big hit, says Véo.

The valuations of European shares are historically low. Europe is therefore a nice pond for 'bottom fishing', according to the portfolio manager. He also points to the much lower correlations (all-time low even) for European shares. This is actually beneficial for stock pickers.