David Rosenberg, president of Rosenberg Research & Associates Inc., has his eye on European industrials as he looks to rebalance his investment model for the continent. “European companies have reported solid profit growth,” Rosenberg said in a report on Aug. 13, adding this results in an upgrade to growth expectations for the Stoxx Europe 600 index for 2026. For the fiscal year, analysts are calling for 10 to 12 per cent profit growth in Europe. “The resilience of corporate profits amid all the geopolitical shifts and policy volatility is a remarkable characteristic of the current market cycle, in which each short-lived correction has become an opportunity to buy the dip and carry stock indexes to new highs,” Rosenberg said. European stocks also offer an added advantage of diversification away from artificial intelligence and the risks that have dogged that trade on U.S. markets and in Asia. The model continues to favour utilities. Industrials were added to the buy list, joining long/buy ratings for electrical equipment and tech-related exposure. Insurance, software, oil and gas and personal and household goods landed on the short side of the model’s ledger. Long additions include the MSCI EUR Info Tech index (MXEUOIT), STXE 600 Industrial Goods and Services (SXNP), MSCI Europe Electrical Equipment (MXEUOEL), STXE 600 Utilities (SX6P), STXE 600 Technology (SX8P) and STXE 600 Food & Beverage (SX3P).