How much volatility can European equity investors take?

European equity markets have started the year strongly, outpacing US equities, where AI spending fears have largely held back the Mag 7. But as share prices and valuations rise, the margin of safety has changed for European markets, leaving them open to shocks — and so far this year, there have been many. The big question is whether European equity markets can power through the rest of 2026, or whether investors should be cutting back on their exposure? The escalation of the conflict in the Middle East is clearly front and centre now, but there are other issues lurking in the background that...