- The post-crisis bull market has mostly carried a Made in America label, writes Vito Racanelli in this week's Barron's cover story. To wit: Since the 2009 bottom, the SPY is up 247% vs. European proxies VGK +102% and FEZ +72%.
- Changes may be afoot this year. Overseas funds have attracted more money in 2017 than the U.S. Ex-U.S. funds are also outperforming: The SPY is ahead 6.9% vs. VGK +15.4% and FEZ +16.9%. Outperformance is also being seen in the global EAFE index and in emerging markets.
- One obvious explanation is central bank policy - the U.S. tightening while Europe's ultra-ease continues. There's also - dare we say it - green shoots of growth breaking out across the pond. U.S. GDP growth since the crisis has been tepid, but it's topped that of Europe by 9%. This year, Europe's GDP growth is seen at 2% (by the IMF - take it for what it's worth), after a 1.7% performance in 2016 (vs. the U.S. at 1.6%).
- Broad European ETFs: VGK, HEDJ, FEZ, IEV, EPV, EZU, FEU, EURL, DBEU, EEA, FEP, HEZU, UPV, IEUR, FEEU, ADRU, FIEU, DBEZ, FEUZ, HFEZ, HFXE, DBSE, DEZU, FIEE, GSEU, HGEU, PTEU, RFEU
- Now read: It's A Large-Cap Tech World After All
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