Is this not just the risk you take for investing in eurozone equities? Or rather the risk you should be aware of if you invest in eurozone equities? I made a previous post on the risks for pensioners investing lump sums in equities on retirement and on how long it can take for markets to recover. https://askaboutmoney.com/threads/s...ervative-investors.156555/page-2#post-1518084. If you were unlucky to make an investment in the Eurostoxx50 at its max in 2000, you are nowhere near having it recover to that level. Which would be unfortunate for a pensioner as you have now reached you life expectancy.This question is sparked by another startling revelation in another recent thread comparing the euro stoxx 50 index to another investment product. However what was overlooked in this discussion was the absolutely dismal performance of the euro stoxx 50 index itself which declined by an average of 1.87 percent from 2001 til 2017. You would think that investing in the 50 biggest stocks in Europe in 2001 would have been a fairly safe bet, even if they might have been relatively expensive then you would think that after even a decade you should have been in the black again.
I just want to emphasize that these were the 50 biggest stocks in Europe, not dot com rubbish basically big Europe, even the German exporting miracle during that period when it exported all those cars and heavy industrial equipment to the world is not represented.
What's even more mysterious is why so little attention is focussed on this, is it the case that Europe is really in decline industrially and if it is surely this should be the top priority of the eu, but it's definitely not.
By my rough calculation, the average total annual return is about 2.4% over the last 19 years. Indeed the price-only version is underwater for the same period.
Yes but that more or less reinforces what I was saying earlier, the European stock markets performed very well in 1980s and 90s but not since 2000. To show a good performance for a European focussed index you need to include the 1990s and even 80s as in your example. 1987 is a very long time ago now, most people working and earning today were not investing back in 1987. Even Warren buffet uses 10 years as a time frame for investment, not 30 years.FWIW, the MSCI Europe index modestly outperformed the MSCI World index, in USD terms, from end-1987 to date.
Not really.Yes but that more or less reinforces what I was saying earlier, the European stock markets performed very well in 1980s and 90s but not since 2000.
Not really @cremeegg.I wonder why this is. Were European stocks overvalued, have European companies fallen behind in terms of their ability to compete on the global stage.
Also, currency values are highly relevant.
the choice of end-point in the comparison are highly relevant.
It really comes down to the sectoral composition of the respective markets.
Well, the sectoral composition of European stock markets has certainly proved a relative disadvantage since the financial crisis.. But equally it proved a relative advantage during the nine years prior to the financial crisis.Europes strengths lie is sectors which are at a disadvantage.
My point is really that different markets outperform at different times but over the long term (30 years+) they tend to mean revert (in broad terms).
Maybe I'm missing the joke but that looks suspiciously like trolling.Very well said, Gordon...………………………..??!!
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