Europe
As Europe struggles financially it bears close scrutiny. So goes the euro, the countries of Greece, Spain, Portugal, Italy, Ireland, and the European economy, so goes Europe and so goes the US.

Europe’s Booming, but Investors Aren’t Making a Cent

3/28/18
from The Wall Street Journal,
3/28/18:

In the past 12 months, the Stoxx Europe 600 has delivered a 1% loss in local-currency terms.

Europe’s economic boom and its increasingly stable politics have fulfilled investors’ deepest wishes over the last year. All bar one: European stocks haven’t made them a single euro. In the past 12 months, the Stoxx Europe 600 has delivered a 1% loss in local-currency terms, accounting for both share-price appreciation and dividends, compared with a 14% total return for the S&P 500.

That is mainly because Europe’s rosier outlook has boosted the euro by 14% against the dollar during the same period, eroding the value of overseas earnings from local listed companies. Around half the revenues of the Stoxx Europe 600 come from abroad, FactSet data show. For the S&P 500 it is only 30%. Investors are also striking an increasingly cautious note about European stocks, unsure whether profits can continue to surprise ...

So, after a period of upward revisions, some investors and banks are beginning to downgrade their expectations for European stocks this year.

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