Since 2009, the Eurozone crisis has resulted in severe economic turmoil in the region. Analysts blame growing debts in European countries for triggering one of the worst economic crises of recent years. While more time is needed to improve the situation, certain trends are pointing to signs of improvement as illustrated by the following:
- Inflation has been steadily decreasing to a 5.5 year low.
- Small and medium enterprises (SMES) are now accounting for 2/3 of employment across Europe.
Why The Eurozone Crisis Is Not Over
Infographic source: Boston University
Seth Klarman: Investors Can No Longer Rely On Mean Reversion
"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More