Should investors just give up on stocks outside America?
No, but it is getting a lot harder to keep the faith
Spare a thought for the analysts, bankers and fund managers who make a living from European shares. If your salary depends on talking up the stockmarkets of the continent that invented them, you have learned to live with disappointment. For much of the past two decades, you could have pointed out that European stocks were cheaper, relative to earnings, than American stocks. You could have reasonably argued that this portended better investment returns and less risk of crashes. And for all that time you would have been utterly, gloriously wrong.
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This article appeared in the Finance & economics section of the print edition under the headline “Keep the faith”
Finance & economics November 23rd 2024
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