Rotation into lagging Euro country indices

For cross-border equity index allocators;
whether its relative or absolute, the IBEX, CAC, MIBTEL & FTSE-100 have trailed their European cousins – the SMI, AEX, DAX and OMX.

The latter group have all visited, kissed and some have flirted above their 200 day moving averages.

While this isn’t the sole pre-requisite, it leads me to believe that we may see some rotation of monies from the “surging” countries into the “laggards”.

note: I am bullish on UK equities

Incidentally, all of the European indices have underperformed the S&P 500 and Nasdaq.

With a strong USD and relatively weaker Euro, there is the plausible trade of buying the lagging EuroStoxx 600 Technology index with your re-weighted Nasdaq scalping’s.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: