# European equities trade at extreme discount versus US stocks, says JPM

- Link: https://www.directorstalkinterviews.com/european-equities-trade-at-extreme-discount-versus-us-stocks-says-jpm/4121158673
- Published: 2024-05-28T08:07:53+01:00
- Author: Amilia Stone

**[JPMorgan European Discovery Trust plc](https://www.directorstalkinterviews.com/company/jpmorgan-european-discovery-trust-plc/jedt.l)**(
[LON:JEDT](https://www.directorstalkinterviews.com/company/jpmorgan-european-discovery-trust-plc/jedt.l))
has announced its March commentary.

**Month in review As of 31/03/2024**

The trust outperformed its benchmark over March.

Positive contributors to relative returns included an overweight position in household
goods and home construction and stock selection and an overweight position in aerospace
and defence.

Detractors included stock selection in retailers and an overweight position in travel
and leisure.

At the stock level, our overweight position in Saipem, an Italian oil and gas services
company, contributed positively to performance on the back of the announcement of
strong results for the fourth quarter of 2023 and after management delivered guidance
that beat consensus forecasts by 20% for 2024.
Our overweight position in Spie, 
a French engineering services company, contributed positively to performance after
management continued to report strong growth (coupled with rising margins) on the
back of excess demand driven by the green transformation of Europe.

Our overweight position in Do & Co, an Austrian events and airline food supplier,
detracted from performance in a period of profit-taking after a period of very strong
price performance.

Our overweight position in Sopra Steria, a French information technology consultancy,
contributed negatively in a period of profit-taking after a period of very strong
price performance.

**Looking ahead As of 31/03/2024**

While inflation is moderating to more sustainable levels and we are cautiously optimistic
for a balanced interest-rate outlook, the risks to the economy have certainly not
disappeared.

On top of the macroeconomic uncertainties, there are numerous political uncertainties
arising out of ongoing geopolitical tensions and imminent national elections.

European equities trade on an extreme discount to US equities, a discount that has
grown following strong 2023 technology-led gains in the US. This argument may not
be new to prospective investors, but the European equity market today can offer 
comparable levels of quality and growth potential.

While the short-term outlook remains uncertain, we believe European equities offer
an attractive entry point to the long-term investor, and we remain focused on selecting
companies with pricing power, strong balance sheets and the ability to grow significantly
over the long term.

[JPMorgan-European-Discovery-Trust-plc-March-Factsheet](https://www.directorstalkinterviews.com/wp-content/uploads/2024/05/JPMorgan-European-Discovery-Trust-plc-March-Factsheet.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2024/05/JPMorgan-European-Discovery-Trust-plc-March-Factsheet.pdf)

**JPMorgan European Discovery Trust plc** ([LON:JEDT](https://www.directorstalkinterviews.com/jpmorgan-european-discovery-trust-plc/jedt.l))
is an investment trust company. The Investment Trust JEDT objective is to achieve
capital growth from a portfolio of quoted smaller companies in Europe, excluding
the United Kingdom.

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