Looking at Shiller P/E ratio for european equities we can conclude they are cheap on a historical basis (in fact, nearby histroical lows) compared to other developed regions.
Low rates, QE, improving economy and a weaker Euro should remain the main drivers of european stock performance during the next months.
Despite the existence of some risks (China and sovereign debt), european stocks present a good buying opportunity. European equities continue to offer attractive dividend yields.
Stock selection remains a key focus during this period of increased volatility and risk aversion.