Ben Carlson at “A Wealth of Common Sense” makes a contrarian case in favor of European equities (http://awealthofcommonsense.com/2016/06/taking-stock-of-european-equities/):
“From a historical perspective there hasn’t been a huge difference in terms of performance between European and U.S. stock market returns:
“This divergence in performance has predictably led to a divergence in valuations as you can see from the table I (Ben, not me) put together comparing the recent metrics between U.S. and European stocks:
His conclusion:
“Things are bad in Europe right now. This isn’t the kind of thing that’s going to get solved overnight. There’s political uncertainty, poor demographics, non-existent economic growth, negative interest rates and the list could go on and on. Maybe one of the best reasons to invest in European stocks right now is the fact that there are so few good reasons to invest in European stocks right now.”
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