After several years of volatility, the European listed real estate market appears to have reached a turning point in 2025. Fundamental indicators have stabilised, financing costs have decreased, and valuations remain attractive from a historical perspective. All of this creates a favourable environment for a new growth cycle.

We previously highlighted the conundrum of European value stocks, particularly banks, trading near their lowest valuations despite boasting their strongest fundamentals in over two decades. Despite continued outperformance, there remains significant potential for a valuation catch-up as investors reassess banks' strategic role in the energy transition.

Global businesses offer natural hedges against currency swings. As euro-based investors, it’s natural to worry about exchange rates, especially when investing in dollar-denominated assets. A key concern we often hear is: What happens if the US dollar weakens? Will this erode returns from US equities?