Similar to how most American new fund flows missed this year’s stock rally, European fund flows missed their own rally as well.
Citi Investment Research: “Equity markets have rallied hard from March lows, up 40-50% in the UK and across Europe. But, this has been achieved with anaemic levels of net flows into equities…
Investor euphoria remains hard to find in UK and European equities. The sellers have retreated, but the buyers are still largely absent.”
Given both US and European new fund flows largely missed the stock market rally, it appears the pessimistic consensus was left behind this year. Optimistic contrarians bought stocks in 2009, and made a bundle.
(Chart and excerpt via FTAlphaville)
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