Change of leadership
Jun 09, 2022
The US has now outperformed developed equity markets in the rest of the world, mainly Europe, for almost 15 years in a row. This is the longest and biggest winning streak of US equities since the seventies. The valuation discount of European stocks compared to their US counterparts is at record levels. We believe therefore that Europe, despite its well-known political, structural and economic issues, is ripe for a rebound. In an inflationary environment, the leadership of US equities, with their big weight of highly valued tech companies, will continue to be put into question. At ECP, we remain therefore committed to our European Value Fund investing in companies with undervalued earning power in the Old Continent.