JP Morgan AM: European equities trade at a significant discount versus the US

JP Morgan AM: European equities trade at a significant discount versus the US

8 januari 2024

Aandelen Europa Verenigde Staten
Rente (02) euro geld monetair beleid.jpg

2023 marked another year of US equity outperformance versus Europe, with the S&P 500 outperforming MSCI Europe by 11% points. Yet with the S&P now trading on 20x 12-month forward earnings, European benchmarks sit at their largest discount to the US in over 10 years.

This is not just a story of sector composition, with this relative discount seen across sectors. While admittedly Europe’s economic fundamentals remain challenging, much of this pessimism appears to be reflected in prices.

Further, we could see some convergence between regional economies this year, as Europe benefits from a continued pool of excess savings and a sizeable proportion of the EU Recovery Fund still to be disbursed. This highlights the importance of a regionally diversified approach to portfolio construction, which you can read more about in our Investment Outlook.

08012024 JP Morgan AM

Gerelateerde berichten