Concordia Europa Invicta
Best quarterly run ever
Though the EU-phoria might have tempered a bit last week, the SX5E is still on track for its best quarterly run vs the SPX ever. This outperformance is importantly very broad-based – 24 of 25 EU industry groups have surpassed US peers since December. After the German fiscal vote on Tuesday, it could seem like near-term catalysts are limited. Some might claim that we have “traveled and arrived” to the EU, but it’s important to recall that the long-term, structural story remains strong. Let's have a look at what speaks in favor of a continued European rally and also some signs that we actually have arrived.