I agree with this however it is not easy, because if you take this view that European stock markets are going to outperform over the next decade then you have to be prepared to lose money because over the last 4 years European stocks as a whole have been losing money (with big falls in 2016 and 2018 although they did recover quickly later).Developed markets tend to leap frog each other from time to time in terms of performance. At current valuations, there is no reason to believe that European stock markets will under perform US markets over the next decade. But who knows what the future holds?
@cremeegg with regard to the big rise in price of European stocks from 1996 to 2000, that was more or less worldwide, the American markets rose much more in that period and has been pointed out they have almost doubled again since 2001. Also does this not point to something else ? During that period was the tech boom, and Europe was at the races then in terms of technology. Big names like Olivetti computers, amd microprocessors, Phillips etc are shadows of their former selves or are gone completely.
Europe seems to have capitulated in terms of technology and is now really far behind. Even in car manufacturing where the Germans were strong they are falling behind because the Japanese and Koreans are now the leaders in electric cars.
Maybe this also explains why quantitative easing has failed in Europe, firstly they are not spending but when they are it is on consumer goods not produced in Europe but in Asia.
Yet the European union is not focusing on this at all, the decline of Italian industrial output in the last 2 decades is striking. Surely at this stage Europe actually needs some protectionism in important areas like technology . But the lack of discussion about this topic at eu level is frightening
European stocks outperformed US stocks in two of the last four decades.
Every dog has its day...
About 15%, cumulative in dollar terms.By how much did they outperform the U.S from 2003 to 2007?
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