EPV - A Contrarian Bet: Why Europe Should Outperform

Based on several metrics, Europe is more attractive than the U.S.

Since fund managers are underweight the U.K. and EU relative to historical standards, I have started to think about moving some more money to Europe.

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EU valuations vs. long-term averages are still quite attractive, especially when compared to U.S. markets. You can see the respective markets' CAPE ratio in the first column (as of 4/30/19, i.e., before the recent sell-off, so valuations are a bit higher than today's), and in the other columns, the expected returns over 15 years.

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