Not buying wind power. Stock photo from Pexels
US investors pull out of ‘dark’ Europe
The US investment bank JPMorgan, which wants to move its employees to London because of the imminent danger of a blackout in Germany, is not an isolated case. Other foreign analysts also consider Europe to be increasingly at risk – and are avoiding doing business in Europe. US companies are already focusing on their domestic businesses.
Strategists at Goldman Sachs Group Inc believe a recession in Europe is a certainty. The US economy is safer than betting on Europe, they said. Even though the path of US growth may be “uncertain”, the economic situation in Europe was simply catastrophic.
“Despite investor concerns about the US equity market, we believe it offers greater absolute and risk-adjusted return potential than recession-hit European markets,” the statement said. It has been a tough year for business in Europe “amid a gas crisis, soaring inflation and tightening central-bank policy”.
And the business news service Bloomberg reported that a Goldman Sachs team said that while the path of US growth may be “uncertain,” the economic situation in Europe was “dire”.
“Despite concerns that investors have about the US equity market, we believe it offers greater absolute and risk-adjusted return potential than recession-plagued European markets,” they noted.
The Stoxx Europe 600 lagged the S&P 500, and a Goldman basket of US companies with 100 percent domestic sales has performed better than a basket of companies with high sales in Europe. Barclays Plc strategists expressed similar concern about European prospects.
All rights reserved. You have permission to quote freely from the articles provided that the source (www.freewestmedia.com) is given. Photos may not be used without our consent.
Consider donating to support our work
Help us to produce more articles like this. FreeWestMedia is depending on donations from our readers to keep going. With your help, we expose the mainstream fake news agenda.
Keep your language polite. Readers from many different countries visit and contribute to Free West Media and we must therefore obey the rules in, for example, Germany. Illegal content will be deleted.
If you have been approved to post comments without preview from FWM, you are responsible for violations of any law. This means that FWM may be forced to cooperate with authorities in a possible crime investigation.
If your comments are subject to preview by FWM, please be patient. We continually review comments but depending on the time of day it can take up to several hours before your comment is reviewed.
We reserve the right to delete comments that are offensive, contain slander or foul language, or are irrelevant to the discussion.