Why the USA is Better than Europe in 1 Chart
- Posted by JC Parets
- on February 12th, 2014
I’ve been getting some emails and read a few articles recently about the strength in Europe. And sure, since the summer of 2012 (when the Eurozone was actually being called an “experiment”) European stocks have rallied very nicely. But when looking at a longer-term chart, it appears like just a counter-trend bounce.
Can this recent consolidation since the 2012 lows be a base where a breakout can confirm a change in that downtrend? Sure anything is possible. But for now, I’ll stick with the trend which clearly down.
I’m not one to fight a strong trend if I don’t have to. And for now, I think this chart shows very clearly how much better US Stocks are compared to European stocks.
Now remember, we are generalizing here big time. There are areas in Europe that are exploding higher – Ireland has been and continues to be my favorite place to be in that region of the world. But overall, the US is still the better place to be from a longer-term perspective.
Here is a closer look at this Europe/USA comparison over the last two years. We can see this well-defined consolidation with converging trendlines. Until this resolves itself to the upside, the benefit of the doubt still goes to the United States.
*** If you like this kind of analysis, register here for more information on how to receive weekly technical updates on International Stock Markets
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- How To Prepare For a Lower Rate Environment
- Audio: Benzinga Morning Radio Show 5-21-15
- BNN Appearance: Agribusiness Stocks & US Dollars
- Agribusiness is My Favorite Base In The World
- Audio: Benzinga Morning Radio Show
- Here’s Why I like Shorting Disney Up here
- A Not So Happy Cinco De Mayo For the Mexico ETF
- One-Third Of the Year Is Over. Now What?
- What I’m Waiting For To Buy Base Metals
- The Must Follow Podcast: JC Parets
Archive by Year