Can European Stocks Overcome Fallout From 'America First' Agenda?

2025-01-22 06:10:00 ET

Summary

• European companies are facing a raft of new challenges from the policy direction of the incoming Trump administration.
• We think select European companies with the right business attributes could do well during the new regime and offer underappreciated return potential.
• Adidas has been able to forge effective relationships with new suppliers in Asia relatively quickly, which should help the company avoid a penalty of new US tariffs on China or Europe, which would increase the cost of its products to US consumers.
• Diploma generates about half its revenue in the US, with 75% of its inputs locally sourced.

By Thorsten Winkelmann & Marcus Morris-Eyton

European equity markets may look vulnerable to fallout from new US policies. But some companies offer investors reasons to cheer....

Read the full article on Seeking Alpha

For further details see: