I’m holding some EU ETFs for diversification, so I’d be happy if the breakout plays out. But I don’t expect it.
A couple of quotes from Yardeni’s recent report:
“Stock investors may be hoping that fiscal policies will bolster the Eurozone’s trajectory, but the political momentum behind them remains sluggish.”
“Investors shouldn’t expect much help from monetary policy either. The ECB held rates steady in September for the second consecutive meeting since the June 2025 cut.”
And it’s not only about policies or sentiment. Yes, EU markets have risen. But earnings growth has been small, so valuations already look expensive compared with history. On top of that, Europe’s earnings growth in the 21st century has been cyclical — and right now we’re not just on a plateau, we’re at a peak.
I sincerely hope I’m wrong. It’s better to be rich than right in skepticism. 😄
Thanks, yeah to be fair a few things still need to go right, and I am very much open to being wrong "failure is always an option" -- but keeping an eye on price in the first instance: key thing in the immediate term is that the breakout holds and sees follow-through
I’m holding some EU ETFs for diversification, so I’d be happy if the breakout plays out. But I don’t expect it.
A couple of quotes from Yardeni’s recent report:
“Stock investors may be hoping that fiscal policies will bolster the Eurozone’s trajectory, but the political momentum behind them remains sluggish.”
“Investors shouldn’t expect much help from monetary policy either. The ECB held rates steady in September for the second consecutive meeting since the June 2025 cut.”
And it’s not only about policies or sentiment. Yes, EU markets have risen. But earnings growth has been small, so valuations already look expensive compared with history. On top of that, Europe’s earnings growth in the 21st century has been cyclical — and right now we’re not just on a plateau, we’re at a peak.
I sincerely hope I’m wrong. It’s better to be rich than right in skepticism. 😄
Thanks, yeah to be fair a few things still need to go right, and I am very much open to being wrong "failure is always an option" -- but keeping an eye on price in the first instance: key thing in the immediate term is that the breakout holds and sees follow-through