Europe has become the ugliest duckling in a market where there are hardly any swans. Its stock market indexes have earned the dubious honor of earning the premier spot in rankings for top losses. And the region?s economies are more likely to end the year in deep recession rather than a light recovery.
All of this would explain why the European market has amassed 85% of all its contributions in investment funds and ETFs considering that, according to data from Morningstar collected at the end of October, funds based in Europe have taken on 121.119 billion dollars in net contributions compared to 143 billion in net withdrawals that the industry has suffered worldwide.
The significant withdrawals seen this year in European financial products contrast greatly with data from United States funds that, although they are also seeing more withdrawals than contributions, they have registered net contributions of just over 4 billion dollars.
Two markets, two realities
But what explains the strong differences in both markets? There are various reasons. The first is the disparity between both capital markets, like the reaction that inventors have had toward different strategies that have been adopted for facing a crisis that while already started in the United States is having grave consequences in Europe.
