Investors have plowed into Europe, making it the consensus positive call, but some analysts are starting to think it’s time to curb the enthusiasm.
Despite markets’ volatile start to the year, investors have plowed $15.5 billion into developed Europe equity funds so far this year, according to data from Jefferies. The funds have seen 32 straight weeks of inflows, as investors bought around $81.8 billion worth of shares, the data show.
The enthusiasm has left equity valuations “too stiff,” said Willem Nabarro, head of European equities for Asia at Exane-BNP Paribas. Europe’s shares aren’t offering enough compensation for the macro risks, he told CNBC.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.