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Why a Global Fund-Manager Favorite May Start to Flounder

This chart shows a “dramatic divergence” between U.S. and European stocks

by Bob Stokes
Updated: August 02, 2021

Cryptocurrencies and so-called meme stocks have certainly received a lot of attention from investors.

Another investment category that has been in favor recently is European equities. No, they may not be quite as "hot" as, say, bitcoin -- but they've been receiving more attention than usual.

Let's start with some recent headlines:

  • U.S. investors are pouring money into European stock funds (Marketwatch, May 27)
  • European Stocks Are Coming In From the Cold (Bloomberg, June 17)
  • It's a Good Time to Invest in Europe (Kiplinger, June 24)

Our July Global Market Perspective provides more insight:

According to a June survey by Bank of America, more than a third of global fund managers are overweight eurozone equities, their highest exposure to Europe since 2018.

So, is it time to jump on the European equities' bandwagon?

Well, let's return to the July Global Market Perspective for the big picture. Here's a chart and commentary:

EuropeUS

[It's] true. The Euro Stoxx 50 has handily beaten the S&P 500 in dollar terms this year. However, take a look at this stunning chart showing the dramatic divergence between the two regions over the past two decades.

The price patterns of the main stock indexes of two of the region's largest economies are also highly revealing.

Our July Global Market Perspective provides detailed Elliott wave analysis of Germany's DAX and Britain's FTSE 100 which every global investor should review. Both indexes have reached critical junctures.

Also see charts of three European meme stocks -- and, get analysis of cryptocurrencies, forex, bonds, metals, energy and much more -- all in all, coverage of 50+ worldwide financial markets.

Prepare now for major global financial shifts that will likely take most global investors by surprise by following the link below.

"Must-See" Chart Set-Ups in an Array of Global Financial Markets

Stocks. Bonds. Gold. Silver. Cryptocurrencies. Forex. Energy...

...and much more.

Many of the 50+ financial markets covered by our in-depth Global Market Perspective are either at or approaching pivotal junctures -- and now is the time to get up to speed -- if you want to embrace opportunity or avoid risk.

Here's the good news: You can access our current global Elliott wave analysis right now by subscribing to our Global Market Perspective.

Get on board now by following the link below.

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