EUROPEAN EQUITIES
Is it a good timing to invest in European Equities?
Consensus is pro United States
Significant underperformance vs US over the past 2 years • AI and stronger economy are part of the explanation • Trump election has been good news for US market
Political Instability in Europe •
Weight in particular on French index • New elections to come in Germany add to the uncertainty
Equity flows driven by the US •
Only area with positive inflows
Negative in Europe
•
Europe underweight in global allocation • Sentiment is very negative on Europe
➔ Main risk is a significant correction in the US market. Europe won’t be immune, even if it should outperform
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Source: Rothschild & Co Asset Management – 2024
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