Dismal performance of the European stock markets since year 2000

Sarenco said:
Developed markets tend to leap frog each other from time to time in terms of performance. At current valuations, there is no reason to believe that European stock markets will under perform US markets over the next decade. But who knows what the future holds?
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I agree with this however it is not easy, because if you take this view that European stock markets are going to outperform over the next decade then you have to be prepared to lose money because over the last 4 years European stocks as a whole have been losing money (with big falls in 2016 and 2018 although they did recover quickly later).
 
I didn't say that I take the view the European stocks are going to outperform going forward.

I can tell you what happened in the past but I can't predict the future.

Incidentally, European stocks have not lost money over the last four years.
 
There appears to be a bit of life lately in the European indices, the euro is back at its lows against the dollar but the European etfs even denominated in us dollars are rising. It could be another false dawn but maybe now in the era of negative yielding bonds that European stocks are the only thing left that are still cheap.
 
The last few months has been very good for stock markets generally and even the down in the dumps european indices are looking good. There has been alot of talk on other threads about the long bull market in the US markets and this is true. However Rory gillen today on newstalk provided some perspective with regard to european stocks, the recent positive performance has only brought it back to a level which it has done several times in the last 20 years but it has failed to break through that high set back in 1999. Thats all that has really happened in the european markets, it is very far from a bull market
 
@joe sod

You are still ignoring reinvested dividends for some bizarre reason.

Total return is the only thing any rational investor should care about.
 
joe sod said:
@cremeegg with regard to the big rise in price of European stocks from 1996 to 2000, that was more or less worldwide, the American markets rose much more in that period and has been pointed out they have almost doubled again since 2001. Also does this not point to something else ? During that period was the tech boom, and Europe was at the races then in terms of technology. Big names like Olivetti computers, amd microprocessors, Phillips etc are shadows of their former selves or are gone completely.
Europe seems to have capitulated in terms of technology and is now really far behind. Even in car manufacturing where the Germans were strong they are falling behind because the Japanese and Koreans are now the leaders in electric cars.
Maybe this also explains why quantitative easing has failed in Europe, firstly they are not spending but when they are it is on consumer goods not produced in Europe but in Asia.
Yet the European union is not focusing on this at all, the decline of Italian industrial output in the last 2 decades is striking. Surely at this stage Europe actually needs some protectionism in important areas like technology . But the lack of discussion about this topic at eu level is frightening
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auto companies are low growth sectors , the share price of Ford was higher thirty years ago than it is today , vw , bmw and daimler are duds in terms of stocks , its a waste of time owning europe , europe is at best a follower , it poops the bed everytime the U.S has a correction and is slower going up too
 
European stocks outperformed US stocks in two of the last four decades.

Every dog has its day...
 
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galway_blow_in said:
By how much did they outperform the U.S from 2003 to 2007?
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About 15%, cumulative in dollar terms.

Although why anybody would care about a 4-year performance period in stock market terms escapes me.

The important point is that over the long term markets tend to mean revert.

Compare the performance of the MSCI Europe index and the MSCI World index over the last 40 years - they're practically identical.

Your oft repeated suggestion that European equities are perennial laggards is simply untrue. It's fake news!
 
Sarenco said:
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About 15%, cumulative in dollar terms.

Although why anybody would care about a 4-year performance period in stock market terms escapes me.

The important point is that over the long term markets tend to mean revert.

Compare the performance of the MSCI Europe index and the MSCI World index over the last 40 years - they're practically identical.

Your oft repeated suggestion that European equities are perennial laggards is simply untrue. It's fake news!
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I just wanted to know by what distance Europe outperformed the U. S during the 2003 to 2007 bull Market, wasn't following markets in anyway shape or form back then

Thanks for the info.
 
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