“Heading into 2026, we believe that a long-term and diversified investment approach into Europe could help overcome short-term volatility and boost returns in the long run.”
- Double-digit returns on a 50-50 Eurozone allocation make 2025 one of the best years of the last decade.
- European industrial stocks are well-positioned to take advantage of public spending programmes, while European banks can engage in higher lending linked to public investment.
- European equities and bonds offer attractive opportunities for global investors seeking to diversify beyond US assets.
A 50-50 Eurozone equity and fixed‑income index has delivered only two negative annual returns since 2015, showing how diversification across asset classes and a long-term investment horizon can help overcome volatility. The 2022 exception – when both equities and bonds delivered negative returns – was followed by three years of above-average returns. Europe as an investment theme offers many opportunities, with European equities among the top performers in 2025, benefitting from policy support, earnings growth, and capital inflows.
You can now read the full whitepaper at the link below
