GDP Growth Differential: U.S. vs. European Union U.S. GDP growth has been stronger than in the European Union in 28 of the last 40 quarters. It can explain why the U.S. dollar has been so strong relative to the euro. Picture source: Brandywine Global
European Equities Lead Bund Yields by 6 Months Because European equities tend to lead bund yields by 6 months, bund yields should turn higher. Picture source: Reuters
Could European Stocks Outperform U.S. Stocks? This chart shows U.S. vs. European stocks at 70-year highs. Keep in mind that investors think that the euro area economy is less resilient than the U.S. economy in the event of a shock. Currently, the euro area economy is more impacted by the global slowdown than the U.S.…
Do Central Banks’ Negative Rates Work in Europe? Not really. Actually, negative rates distort economies and leave little room to maneuver in the next recession. Secondly, extremely low interest rates are also bad for European banks, like Deutsche Bank, which in turn is bad for economic growth. It’s a feedback loop which could lead to…
European Economic Slowdown – Real GDP Growth 2018Q4 Is Europe’s slowdown severe? Well, this great chart shows real GDP growth in 2018Q4. Picture source: European Economic Snapshot
