Diverging Economies = Diverging Monetary Policies


 

Baker Boyer’s View:

While Europe’s challenges remain complex, keep in mind the difference between economies and markets.  Stock prices in Europe look more attractive from a valuation standpoint compared to U.S. stocks, indicating some of the divergence in economic health may be accounted for in stock prices.  While this does not mean European stocks will prove to be a better investment than U.S. stocks over the near term, it does mean there may be more of a cushion for potential economic headwinds relative to U.S. stocks.