Anxiety over Europe’s debt problems has created an extraordinary opportunity to buy world-leading European companies at compelling valuations. European equities are trading on eight times prospective earnings—the lowest valuations in four decades—and at over a 40% discount to their US counterparts, which is the widest gap in living memory. Its corporate sector continues to perform better than might have been expected. After five challenging years for the world economy, levels of profitability and indebtedness have improved. Although conditions have deteriorated in Spain and Italy, the US is recovering and there is continued strong growth from the emerging markets.