What accounts for the wariness towards European equities?

Th e wariness towards European (euro-zone) equities can now be seen from: The low level of the PER; The sales of euro-zone equities by non-residents and domestic investors. What accounts for this wariness towards euro-zone equities? Not corporate profitability, which is strong; Not interest rates, which will remain low. It is rather explained by: The low level of long-term growth in the euro zone; The persistence of political risk in the euro zone; Excessive pessimism about short-term growth prospects. All things considered, the outlook for euro-zone equities is in reality positive if we exclude the issue of long-term growth, but the low level of long-term growth does not prevent profitability from being strong.