Financial research and publications

Ugly divergence in Europe vs. the Great Deleveraging in the USTopic of the month: The Atlantic divide
Divergence between US and European equities

How Europe's equities perform has always tended to be quite closely connected to what happens to share prices on Wall Street. Since 2011 though, the two seem to have been going their separate ways. European bourses are being penalised by top-heavy cyclical exposure and underexposure to technology, translating into much greater variability in profit margins. Before 2007, profit margins had been moving more closely into line with US corporate margins. This positive convergence impact has gradually faded away, leaving Europe drifting further and further behind the US.
     

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