Rotation into lagging Euro country indices
June 18, 2020 Leave a comment
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.