After recovery in recent years, the European economy is “cools” Hi Leah, considerable indeed signs of slowing in Europe. The problem is not only in countries like Italy, Greece or Turkey, but also in Germany, also powers stood on the brink of recession in the second half of 2018 following a drop in new car sales in the country. If Trump decides to impose customs duties on importing vehicles from Europe, it will be another blow for Germany and other countries that follow the car industry. Also the United Kingdom’s separation from the Union within brkazit not going “smoothly and Europe changing socio-political and hoops, going with the rise of nationalism at the expense of the parties ‘ leaders. All of these things increase the anxieties of investors expected in Europe in the coming year. Whether the Central Bank will have to continue to support the European economy or that she still can manage on her own? In our opinion, Europe “gear down”, but is not a crisis. The expected growth in the coming year is indeed low, 1.6%, but still positive. In addition, Europe’s unemployment fell below 8%, the lowest level in ten years, and the average salary continues to climb. Though the Central Bank stopped buying the bond program, but it is expected to renew the bond money that will expire. The Bank Governor also said that the interest rate remains unchanged for at least another year, and probably will support further economic recovery. In other words, Europe is expected to continue to grow slowly compared to other Western countries, but is probably not deteriorated Japan ל”תרחיש” long years of recession and deflation. Then, continue to steer clear of investments in Europe or you could start to increase exposure. Due to the slow growth and the risks that exist there, we prefer to maintain low exposure to investments in Europe. Our focus is on quality and stability of European companies, the majority of their sales is directed outside the Mainland, so that they do not depend directly on developments in Europe. For example, the German airline Lufthansa, that growth rate is the highest in the industry and its stocks are traded on a low multiplier for our profit. Also the European market we have low exposure only. The interest in Europe is expected to increase in the near future and profitable yields and yield still more to compensate for the risk. Therefore, you can follow other side developments in Europe and to invest when opportunities start to emerge.

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