Europe’s Mini-Goldilocks Moment

What if Europe is just... fine?

Call it mini-Goldilocks. European activity is surprising to the upside just as inflation starts undershooting expectations again. Add improving PMIs, better earnings revisions, sub-15x equities and positioning at just the 46th percentile, and the setup remains surprisingly constructive.

The traditional way to think about Europe is that something is always going wrong. Which makes the current setup mildly confusing. Perhaps Europe is actually just… doing fine?