Chart o’ the Day: US Investors Way Underweight Europe

For just the third time in 50 years, US stocks have outperformed MSCI Europe by 100% over the last ten-year period.

As a result, US portfolios look particularly lopsided, with American investors holding just 20% of their equity allocation in foreign stocks. Assuming that only a portion of the other 20% of that is European stocks and you get a sense of just how underweight they are.

Here’s a chart of US vs Europe stock fund flows that will blow your mind, via Michael Batnick’s latest piece for CFA Institute’s blog:

You should head over and read the whole post – there’s some eye-opening stuff in this data.


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