European Equities: Value Strategies For 2014

European equities, after digesting S&P’s downgrade of France, had to contend with rather tepid GDP growth during the third quarter. The European Union’s statistics office said GDP of the 17-nation euro area rose only 0.1% compared to 0.3% in the previous quarter. The region therefore avoided a contraction by a hair’s breadth, justifying the ECB’s recent action to cut interest rates.

The Yellen effect on European equities

European equities may have wobbled but were lent a hand Thursday by Janet Yellen’s dovish statements before the Senate Banking Committee. She came out strongly in favor of quantitative easing, saying it was “imperative to do what we can to promote a strong economic recovery,” and that the program had...