Millennials: how to get a £1 million investment portfolio by 2050
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The US market has been a great place to invest since the financial crisis began in 2008. It has outperformed Europe in six of the past eight years. From 1st Jan 2008 until now, the European market is up just 17.39% compared with a rise of 107.9% in the US. A remarkable difference.
However, the first eight years of the millenium painted rather a different picture, with the European stock market being the better investment. It outperformed the US stock market in seven out of eight calendar years from 1st Jan 2000 to 31st December 2007. Over the whole period this resulted in the European market returning 40.39% while the US market lost 11. 31%.
Now that things are starting to return to ‘normal’ in the world’s largest economy, with interest rates starting to rise, will its current run of good fortune continue in 2016 or will the tide turn once again? GDP data is already starting to deteriorate and it is possible that the Federal Reserve may have to cut rates again in the new year. Embarrassing and unsettling for markets, but at least the Federal Reserve would have something to cut now I suppose. I’d say the odds are actually stacked in Europe’s favour.
Here’s five reasons why:
If you are interested in dipping your toe back in the European waters, Elite Rated funds in this sector include Baring Europe Select, BlackRock Continental European, Henderson European Selected Opportunities, Jupiter European and Threadneedle European Select.
All performance data sourced from FE Analytics. Looking at the S&P 500 and MSCI Europe over the periods.