Europe takes over investments from US
19:06
Our continent is starting to be an antidote for investors who are nervous about buying American stocks during the economic crisis and election year. Funds such as BlackRock and Manulife say that our region's coordinated and swift response to the pandemic is also a reason to be satisfied with attracting investors.
First, US valuations may seem exaggerated. Second, tensions on the Washington-Beijing line are high, and third, we have the November elections.
"When you compare the risks of an upcoming event, continental Europe is a relatively quiet economy compared to the US, UK and China," said Peter Chatwell, head of strategy at Mizuho International.
A recent study by Bank of America among fund managers showed that Europe is their favorite region today, with investors being the most overweight in euro stocks since 2018.
Vanguard FTSE Europe ETF purchased shares for nearly $500 million in August, the best month since January. BlackRock also re-armed itself with European stocks in June and cut US allocations.
(FORTUNE)
