Transatlantic stock switch tempts at mid-year yet again

Goldman Sachs points out that mutual fund flows into European stocks this year have been their strongest since 2015. But inflows to all equity markets are zooming higher everywhere and the relative picture is far less clear.

A year ago, investment circles were abuzz about an eastward leap across the Atlantic. But that stock market trade has yet to bear fruit – undermining advice to do it yet again this year.

At mid-summer 2020, many investors began a switch to cheaper European equity from seemingly overvalued US indices highly concentrated in tech firms reaping lockdown windfalls.