iShares S&P Europe 350 (NYSE:IEV) relative to the iShares MSCI All Country World Index Fund (NASDAQ:ACWI) into the end of the year
Prices remain weak, indicating European weakness, but early signs of stabilisation are appearing as the oversold RSI attempts to turn higher. This suggests further downside risks could be limited, with price action to stabilise into the end of the year. If the RSI can manage to break above the moving average, this would help improve investor sentiment, and likely lead to a trend change, and European outperformance into early 2015.
Money managers can move towards a neutral stance to Europe relative to the World, and be prepared to go Overweight Europe in early 2015.
