One point we’ve made consistently herein over the past year+ is our view that the rest of the world, particularly Europe, lags the U.S. in terms of the economic cycle. We’ve also noted via video(s) that global equities (again, particularly Europe’s) have underperformed the U.S. for an unusually long stretch. Hence, our persistent optimism over European equities.
Bespoke Investment Group, in their commentary this morning, apparently agrees:
Europe’s economy looks stronger
than the US’ right now mostly because of the stage of
the cycle both are in. Europe is roughly 3 years
behind the US, and early- and mid-cycle cyclical
activity is still ramping up. That leaves us optimistic
on performance for Europe over the next two years.
Which makes for the perfect segue for a replay of our video from July 17th of last year. I strongly encourage you to spend a few minutes and watch. You’ll not only grasp why we’ve been optimistic about opportunities beyond our borders, but, perhaps more critically, you’ll be reminded of the importance of international trade:
And here’s a performance update from the date of the video:
Click to enlarge…..
