Monday, April 9, 2007

Europe crosses US in stock market value. First time since WWII

Via the NYPost

You can't pick one single reason for this. Instead it is a confluence of factors that have come together at the right time...
-- It's amazing what a stable solid currency can do for the long-term economic prospects of a region. If the Euro and the Pound continue to perform well against the dollar, it is better to hold Euro and Pound assets - here European stocks
-- More and more Asian and European firms prefer to list outside the US as US markets seem to be inefficient. Underwriting fees in the US are the highest in the world, coupled with the fact that IPO's are slowly becoming commoditized.
-- There is more growth in companies outside the US. So more companies tend to list outside the US.
-- etc etc

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