The CEO of the biggest private equity firm in the world, Blackstone, thinks that Europe will never grow.
“Our baked-in assumption is that Europe never grows, you have to improve it” – Blackstone CEO Steven Schwarzman
This should not come as surprise to anyone. With recent ECB QE announcement and negative interest rates, the EU finds itself in the very same boat as the US does. Overvalued markets, deflationary forces, no real economic growth, heavy debt burden, nonperforming assets, etc….
What’s worse, the EU is a basket case of dysfunctional countries and politicians. I have said it before and I will say it again, Germany should dump the Euro and get out of this crazy union. It is the only economy that still has a chance. Otherwise, Blackstone’s view is right on the money. In other words, don’t expect to see any sort of divergence from the EU stock indices. Chances are high that most of them will simply follow the US market.
