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European Equities: Bullish Relative Reversal - Thursday, 29 August 2024

Writer's picture: Lester DavidsLester Davids

Real-Time: 19h39 (S/Time); U.S. Trading Session


An analysis of the weekly chart notes the following:


  • A multi-year underperformance, however, the potential for a bullish relative reversal.

  • A false breakdown relative to US equities.



It's Also Worth Noting:


The region trades at a discount to the US.

  • A price-to-earnings ratio of 15.3 and a price-to-book ratio of 2.1x

  • U.S equities (core) trade at a premium, with P/E of 27x and a P/B of 4.8x.



It terms of sector exposure, investor would be diversifying away from the richly valued technology sector (31% of the US ETF) toward financials (+19%), healthcare (+16%) and industrials (+16%).



To trade/invest you will require an offshore account.


Contact the Unum Capital Trading Desk to get started.


e-mail: tradingdesk@unum.co.za | call: 011 384 2923


Lester Davids

Analyst: Unum Capital

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