The Markets A Contrarian Call on Europe
27 snips
Sep 26, 2025 Mark Wilson, Head of Equities Franchise Sales at Goldman Sachs, shares his insights on European markets. He highlights that despite a strong rally in US stocks, Europe presents unique investment opportunities, particularly in banks and emerging sectors. Wilson notes that corporate feedback from Germany shows mixed fiscal experiences, while single-stock volatility is high, creating chances for strategic trading. His top recommendations include investments in Chinese AI and beneficiaries of Germany's fiscal initiatives.
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Professional Positioning Remains Conservative
- Professional investor positioning is not stretched despite a six-month rally and sits around the 50th percentile on a one-year lookback.
- Mark Wilson says many investors entered September with cash on the sidelines but have been stopped into the rally.
On-the-Ground Germany Takeaways
- At the 14th annual German Corporate Conference, Mark observed companies not yet seeing tangible demand pickup from Germany's fiscal shift.
- He noted sentiment has moderated but many corporates still expect the fiscal story to play out.
Europe May Enter An Investment Cycle
- Economic data in Europe remains mixed with stronger PMI but weaker IFO readings, yet Goldman raised euro area GDP estimates for this year and next.
- Mark Wilson highlights a potential investment cycle after long underinvestment in Europe if fiscal support materializes.