A $100 Billion Hole May Be European Market Rally’s Best Ally
- Europe equity funds started seeing inflows just 3 weeks ago
- Pictet, BofA are overweight European stocks on valuations
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European stocks are near a four-year high and technical indicators suggest that the rally may have gone too far. But some signals still favor a market ignored by investors for much of this year.
Fueled by the optimism over U.S.-China trade talks, the Stoxx Europe 600 has outperformed the S&P 500 this fall and is now heading for its best year in a decade. However, even the latest gains look modest in relation to a $100 billion investment exodus from the region’s equity funds in 2019.