WEALTHTRACK Europe Is on a Tear, Values Abound & Top Manager Sarah Ketterer Is Investing
Jul 12, 2025
Sarah Ketterer, CEO of Causeway Capital Management, delves into the emerging investment opportunities in Europe. She discusses how U.S. trade policies are unexpectedly fostering growth in Europe, particularly in Germany and the pharmaceutical sector. Ketterer highlights the rising defense budgets that signal an optimistic financial landscape. She also emphasizes the importance of disciplined diversification in investment strategies, providing insights on managing risks effectively while steering clear of over-diversification pitfalls.
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Europe's Investment Renaissance
- European markets have surged due to anticipated increased spending on defense, security, and infrastructure driven by policy shifts.
- Currency strength outside the U.S. has amplified returns, making Europe an attractive investment region.
Draghi's Reform Vision Gains Traction
- Mario Draghi's report on European competitiveness is being seriously considered and could catalyze significant reforms.
- Key ideas include promoting stronger lending, deregulation, and reducing fragmentation among EU countries.
Eurozone Valuation Gap Persists
- Despite recent gains, European valuations remain much lower than U.S. markets, offering a margin of safety.
- There's room for non-U.S. markets' multiple expansions as the valuation gap narrows.
