Stocks in the US are outperforming those in Europe by a wide margin this year. As shown below, the S&P 500 is down 11.89% year to date, while the Dow Jones Euro STOXX 50 is down 23.74%. For a bit of perspective on this relationship going back further, in the bottom chart we provide the ratio of the S&P 500 to the Euro STOXX 50 since the European index was created at the end of 1991. When the line is declining, European stocks are outperforming the US, and vice versa for a rising line. As shown in the chart, the US outperformance in '08 is the first time it has happened since the period from '00 to '03.
You may find the picture interesting when viewed in Euro's from the european investor perspective
Posted by: Nick Gogerty | August 14, 2008 at 11:46 AM