E D'S RANT
Februar y 2019
European markets are being left high and dry by the rush to fund America’s stronger economy, says Michael Wilson. Well, that’s the way it sometimes looks. How long before the tide turns again?
H
ands up if you’ve heard enough about Europe for now? Okay, okay, you can put them down again. I’m going to try and talk about something that isn’t Brexit this time.
the bosom of the European establishment, having scared ourselves silly during a 30-month flirtation with the cold, empty darkness outside. It might be one, it might be the other. Then again, it might be something else. I’m sure I wouldn’t know. So, just for once, I’ll try not to bully you into looking at it in any particular way. Shall I mention, though, that over the last year my Legal & General European Index fund has outperformed the Footsie, the All-Share, the Nikkei, the bullion index and the Brent oil price? Not so bad, perhaps, for a part of the world that’s not been getting a good press?
I promise…..
I mean, what would be the point? By the time you read this, depending on who you choose to believe, we’ll either be heading proudly out toward the sunlit uplands, flying free with £39 billion of unpaid euro-divorce bills jingling in our back pockets - or else we’ll be returning gratefully to
Major stock index movements in 2018 % change 2018 (nominal)
Estimated p/e end2018*
Shiller CAPE end2018*
S&P 500
-6.1
17.5
26.8
Shanghai Composite
-25.5
6.7
13.9
Nikkei 225
-12.1
11.9
22.4
FTSE 100
-12.4
14.8
14.6
Euro area average
-14.6
13.5
18.8
Germany DAX
-18.1
12.5
16.4
France CAC 40
-11.7
14.4
18.6
Italy MIB
-16.1
11.7
21.5
Netherlands AEX
-10.7
14.2
21.6
Spain IBEX 35
-14.9
13.3
13.9
Belgium
-14.4
14.6
20.7
Portugal
14.9
17.4
13.9
*Estimated. Sources: Star Capital, Financial Times, IFA Magazine
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