Tuesday, October 29, 2019

US S&P vs UK FTSE vs Euro Stoxx - Stock Index Performance Last 4 Years

Stock Index Performance Last 4 Years - US S&P vs UK FTSE vs Euro Stoxx in US$ terms shows that while US Index is up 50% taking Forex into account UK stock market is only up 2%, Euro Index is up 10% in comparison.

Brexit Uncertainty is one major factor. Also I believe the lack of innovation in Europe when compared to US which is leading in tech innovation and disruption is another major factor.
Returns over next 4 years for UK and Europe could improve if business sentiment and investment improves after Brexit issue is done one way or other. However I expect the US Index to continue to deliver with increased innovation and earnings especially with the lower corporate taxes and abatement of trade war with China. The US China trade war will be like the Cold War which will keep going but they will come to some mutually agreeable stalemate.





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