The Euro crisis is taking a toll on sentiment throughout the region. Long-term sentiment indicators have cratered in recent months. According to Kelpie Capital and the Montanaro Indicator for European sentiment, the bears have clearly taken control of the sentiment picture. They cite this as one part of the bullish long-term outlook for European equities:
“At the moment there is a race on the part of fund managers to emphasise how little Euro exposure they have. Like the financials in 2008 or US Listed Chinese stocks this year, it has become a badge of honour to say you are avoiding Europe, pitching it to investors as a benefit of your “flexible” mandates.
The Chart below form Montanaro Fund Managers shows that investor sentiment on Euro Equities is back at crisis levels.”
Source: Kelpie Capital
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.