International Finance

Why European Stocks Look Cheap (But Are Not)

Why European Stocks Look “Cheap” (But Are Not)

There is a seductive simplicity to the phrase “European stocks are cheap.” It shows up outlook, every quarterly letter from asset managers trying to sound contrarian, and every financial headline that needs a hook. The pitch goes something like this: European equities trade at a discount to their American counterparts, therefore they represent value, therefore […]

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The Real Cost of a Trade Surplus (and Why No One Will Admit It)

The Real Cost of a Trade Surplus (and Why No One Will Admit It)

Every country wants to be a winner. And in the grand theater of international economics, nothing signals victory quite like a trade surplus. Politicians beam when announcing that their nation sold more to the world than it bought. Newspapers trumpet the numbers. Economists nod approvingly. The message is clear: we won at trade. But what

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