Economics
Japanification Is Looming for Europe. What Should Investors Do?
- Europe’s economic and market trends converging with Japan’s
- Stick to stable growth stocks, be careful of banks: Berenberg
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If Japan is the path Europe is headed toward, a few words of advice for equity investors: stay away from banking stocks, stick to your consumer darlings, and keep your expectations low.
With Europe once again delaying interest rate hikes, Japanification has become pundits’ catch-all term for a host of economic woes bedeviling the region. The parallels are obvious: record-low rates, negative bond yields, sluggish economic growth, and an aging population.