If Barclays Bank is correct, a relative value trader’s dream could be setting up between European and US mid-cap stocks. European mid-caps under-performed similar US stocks In a research note today, the bank noted that performance of European mid-caps (minus UK stocks) has significantly under-performed similar US stocks. In fact the gap in value between the two is the largest since January of 1995. The reason for this divergence of value is due to earnings of European companies. “The reason for the under-performance of mid-caps in Europe appears to be clear,” the report says. “While UK mid-cap stocks have delivered…
European Mid-Caps: Playing Earnings, Valuations Catch-Up
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.