JPMorgan: U.S. Trade Is Crowded, Buy Europe

Mislav Matejka, JPMorgan's global equity strategist, told CNBC yesterday to buy Europe because: 1) the U.S. trade is currently very crowded, 2) capital will flow to Europe from the U.S, 3) Europe's credit cycle and money supply are bottoming out, 4) the depreciating euro will provide a tailwind to the European stock market, and 5) sovereign QE at the ECB would only add power to their call.

But JPMorgan doesn't think we'll see sovereign QE at the ECB. They put the probability at less than 50%.

On a related note, last month, USAA's Wasif Latif told CNBC that European stocks were undervalued relative to U.S. stocks. So I'm starting to see a lot of bulls on the European stock market. Well, at least relative to the US stock market.

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