Why is the European economy failing? The U.S. economy has much more incentive to grow in the coming months than the European Union. The economic situation in European countries is currently in a terrible state, Bloomberg reported, citing data from financial conglomerate Goldman Sachs Group Inc.
“Analysts led by David Kostin say that while the path of economic growth in the U.S. may be ‘uncertain,’ the economic situation in Europe remains dire,” the material says.
According to experts at Goldman Sachs, the potential profitability of the U.S. stock market is now less exposed to risks than the performance of key European trading platforms. Therefore, if you compare the European economy vs. the U.S., the latter seems more resistant to modern challenges. European Union markets are currently suffering from a recession.
“In dollar terms, the Stoxx Europe 600 has underperformed the S&P 500 this year, and Goldman’s basket of U.S. companies, which have 100 percent domestic sales, has outperformed the one with high sales in Europe,” according to a Goldman Sachs research note.
According to investment strategists, U.S. firms that do most of their business in the U.S. will fare better than those operating in Europe, where a recession is virtually guaranteed, the foreign analysts concluded.
On Sept. 12, the Washington Post suggested that the U.S. could benefit from a recession in Europe to combat rising inflation. If the European Union goes into a slowdown, a lot of people will reduce demand for a wide range of goods. The U.S. could look on the bright side of this situation as it would affect inflation, the highest in 40 years.
Earlier, we reported that uranium prices reached their highest since March.