After getting past a variety of elections—most notably the French presidential election—without anti-market sentiment spreading throughout Europe, we have seen a relatively large shift in equity market performance. Fundamentals within Europe were allowed to drive performance as opposed to equity markets needing to be wary of Brexit or Trump-like election surprises.
Europe’s fundamentals and, particularly, rebounding earnings have been strong.1
Small-Cap Stocks Can Respond Quickly to Strong Economic/Fundamental Data
In Europe, we’ve seen the cyclical nature of small caps—and it happens to be connected to a distinct outperformance over European large caps over the longer term.
European Small Caps—Both Short- and Long-Term Track Record Looks Strong
Characteristics of the WisdomTree Europe SmallCap Dividend Index today:
No Comments