Investors have secretly been moving away from S&P 500 stocks to Euro stocks. The past, excellent performance of the S&P 500 was mainly dependent on Tech stocks and due to recent events in AI and Elon Musk and his buddy DJT, etc. investors now think that Euro stocks have been undervalued in recent years.
One good performance sector has been in European Finance and the ETF BNKE (Amundi Euro Stoxx Banks UCITS ETF Acc) has shown 53% growth in one year.
Another ETF is ESIF (iShares MSCI Europe Financials Sector UCITS ETF EUR Acc) has grown almost 38% in one year.
These two ETFs provide a wide coverage. UK banks are also expected to show good future performance and so buying ESIF at a good price is also on my potential 'to do' list.
I purchased some shares of BNKE on 7th February 2025 which so far have shown an 8% gain...
Euro government defence spending and a stable economy may now seem more attractive to investors than the downturn in USA Tech and an unstable USA government. BNKE has gained 30% in the last 3 months vs. a loss of 1% for the S&P 500.
Ken Fisher has also slightly moved away from Tech stocks and more towards Euro investments.
Note: This is not investment advice, please do your own research.
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