Why money from America go to the European equities?
means “funneling” in European equities.
Only US funds last week
transferred a record amount of cash –
$ 3.9 billion – in equities in Europe.
Such data is EPFR Global,
research firm, which
It tracks the movement of the stock flows.
"The trend is definitely accelerating".
– said Cameron Brandt, director of
US investment in
Europe by the middle of March, ahead of
in terms of the February and three times as much,
than in January. That’s why investors are in Europe.
The success of European equities
– it is no secret – the fact that European
action is very “hot”. From
moment, as the European
the central bank announced that it plans to
stimulate the economy, the markets are strongly
increased. STOXX index rose by 16% in the
year, while the German DAX rose by 21%.
The markets of Belgium, Sweden and even Spain
(Yes, Spain!) Behave very
good so far. And so it turns out that
the situation on the European market is much better
than in the US markets, which have risen
just one more than the percentage of the
year. When US stocks rise in price,
investors see more potential for
growth on the other side. "It’s time
Europe to catch up with the markets", – He speaks
Kevin Kelly, a portfolio manager Recon
Capital, which invests in
Europe. – "That’s why we see movement
investors’ money in Europe".
greatly weakened the euro, but
This week, the euro rose slightly, although
and it is still about 12-year-olds
lows. Many believe that the dollar
and the euro can catch up this year.
This monetary situation makes European
the company more attractive to
investors because their production
It sold cheaper than American goods
companies. European exports on the rise
and the euro zone economy is showing
signs of recovery. We expect this
trend continues – the flow of money in
Europe is unlikely to stop soon
time. 63% of fund managers want
to invest more in Europe this year,
according to the BofA Merrill Lynch statistics. it
the highest rate since 2001.
But there is one problem
for US investors who
willing to capitalize on Europe now – it
Euro. Profit of 16% in European equities
Euro does not look so good when you
translate it back into dollars. here
why investors are looking for ways to protect themselves
the further decline of the euro.
As long as a variant solutions
this problem – ETF, which allow
investors to invest their money in
Covering a wide range of fund
European shares without loss of profits
because of the weakness of the euro. "currency
hedging via ETF is very popular
now"- says Marc Chandler, chief
currency strategist at Brown Brothers Harriman. For example, Deutsche Bank only
recently released three new ETF, which
hedge all the risks to the movement of currencies. iShares
y of BlackRock, for example, hedged
German ETF to 15%
During the past few months.
Another WisdomTree fund retained more than 20%
This year, he has shares in Germany,
Spain and France.
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