In France, Socialist Gov’t Outperforms Center Right: Societe Generale

While everyone is focused on the U.S. markets' incredible rally, peripheral European markets are under-priced and on the verge of a major rebound, writes Societe Generale analyst Paul Jackson. While most traders are skeptical of France, Jackson thinks that now is the perfect time to invest there, especially because a socialist government has recently been elected.

Now that the U.S. economy is recovering, and appears ready to absorb the effects of tapering, and China has avoided the much-feared hard landing, Europe is in a great position to finally recover from the global economic crisis. “European data flows have also improved and this enhances the likelihood that profits will grow,” says Jackson, “this will enable European equities deliver...