Do not write off European stocks yet !

Since the financial crisis, European stock-markets have dramatically underperformed their US peers. Multiple reasons for this: a lack of technology companies, structural & political issues and, last but not least, a European debt crisis in 2009. It is worth highlighting that European stocks have not always been performance laggards. In the 2 decades from 1989 to 2009, the performance of the Eurostoxx 50 indeed matched the one of the S&P 500. We conclude that we should yet not write off European stocks as they could come back, driven by a combination of improving fundamentals and undervaluation.