Since the end of 2007, European equities have underperformed US equities by 63% on a real total return basis (in local currency terms).
US 70% responsible for current rates
European equity markets remain attractive to us. The combination of a solid macroeconomic backdrop outside the region and a strong recovery domestically has helped propel earnings higher.
Underweight European equities
10-year Treasury yields widened to 2.73%
Financial markets are heavily distorted by the unprecedented market presence of central banks. Markets have become extremely sensitive to changes in central bank actions.
Investors can 'sleep easily'
Sentiment towards European equities has been on the rise this year.
From Japanese equities to corporate bonds