The lack of a trigger for European share prices to soar

European equity valuation remains low, despite the very low level of long-term interest rates and European companies’ high profitability. We believe there needs to be a double trigger for European share prices to soar: Equity market investors must become convinced that long-term interest rates will remain low for a long time ; They must also become convinced that there will be no recession in the euro zone, given the stimulatory demand-side policies, the strong borrower solvency and the end of the industrial recession in 2019. If this double trigger is released , the potential for a rise in share prices in the euro zone is very significant, in the order of 23% .