European equities offer relatively low cross-region valuations alongside excellent fundamentals across infrastructure, aerospace, space and defense, financials and other industrial segments. This is the most bullish outlook on the region since after Liberation Day last year. Ferrovial, Societe Generale, RWE, OHB, BNP Paribas and Nexans are named as expressions of that view. x.com 

European equities are next in a cascading collapse running from China and India to Europe and then the US. A reversal in EUR/USD should take them back below their 2007 peak. x.com 

European stocks should rebound as the Iran ceasefire takes pressure off a market hedge funds had heavily shorted. Per the FT, hedge funds made record bets against European stocks because of Europe's sensitivity to the Iran war. European photonics is already coming back to life, with IQE up 10.78%, Soitec 9.96% and Sivers 12.7% today. x.com 

European banks are a structural re-rate of an industry priced like a casino that can trade like a utility. They trade at 8.5x earnings with a 6% dividend yield plus 3% buybacks, and 1.4x tangible book for an expected 16% return on tangible equity, and have beaten the Nasdaq-100 for five years. Cost control, capital returns and steady management run across the sector; Monte dei Paschi, BBVA and ABN AMRO are one trade. A Russia-Ukraine resolution, possibly soon, would lift Europe and Raiffeisen. … Show more

European financial stocks look badly exposed to socialism, second-order effects from Iran and collapsing credit, so the short on European financials stays. @qthomp, often a sparring partner on tech, fully agrees here, and the FT reports, via @LiveSquawk, that hedge funds are making record bets against European stocks. x.com 

OVH Groupe is an interesting way to invest in Europe's push for more tech sovereignty, though it is still not a quality company. The stock rose 9% today and is up more than 100% this year. x.com 

The euro loses as the EU centralizes power in Brussels, which accelerates capital flight. Removing national vetoes on foreign policy, which Commission President von der Leyen backed on April 14 as a way to avoid systemic blockages, is the fifth such decision against diversification. It follows tighter stablecoin rules, crypto regulation under AMLR in 2027, a €10,000 cap on cash transactions and 212,000 banking jobs expected to be lost to AI by 2030. x.com 

US stocks are in a bubble that could end more like 1929 than 1999, given massive leveraged consumer debt and the belief that the party is only getting started. This is the most negative stance on the market since 1999. Only about 5 to 10 companies still look worth owning, mostly non-US stocks that aren't bubbly like US stocks. x.com 

Emerging-market equities, especially China and Latin America, are early in a multi-year rotation away from the US, with better macro, faster earnings growth and cheaper valuations. The US is taking on EM traits, including strikes amid nuclear talks, attacks on Fed independence and big deficits, yet keeps a premium. EM earnings may grow 21%-29% versus 13%-14% in the US, Brazil trades near 9x CAPE, and US institutions barely own China. The Hormuz-fueled commodity super-cycle adds to it. x.com 

Volkswagen evidently cannot be restructured, and the supervisory board's refusal to back CEO Oliver Blume's turnaround plan is an admission of failure. Per the quoted report, labor representatives and the state of Lower Saxony resisted especially on job cuts and group restructuring, so management will push the overhaul in stages, with the next board meeting in September. This is the point to pull the ripcord on the shares at the latest, and the management board should arguably resign together. … Show more