Jun 19, 2024
European stocks haven't kept up with US Equities Since 2009
Until 2009, the Euro Stoxx 50 and the S&P 500 showed similar performance patterns. Since then, however, they have significantly diverged, with the Euro Stoxx 50 lagging
3 key reasons explain this divergence:
- Dominance of US Technology companies
- Monetary Policy Divergence between US Fed and European Central Bank (ECB)
- Higher Economic Growth in US relative to Europe
For more explanation behind these three factors and implications for investors, please visit my detailed post here