European Corps Increase Exposure To Europe For First Time In Decades

If you think that US stock markets are fully valued and that Europe is finally turning a cover, it makes sense to increase your exposure to European stocks. But the real story is more complicated because the companies themselves have revenue exposures around the world. The fate of the mining industry, for example, is closely connected to Chinese GDP growth no matter where specific companies are domiciled.

The good news (if it is European exposure that you’re after) is that European companies have increased their exposure to Europe for the first time in decades, reports Morgan Stanley’s European Strategy Global Exposure Guide 2015, though it still has a long way to go if it’s ever going to reach mid-1990 levels...