Barclays, provider of exchange traded funds (ETFs), says the probability for European and Asian markets to outperform the U.S. is favorable. In the past few years, equities in these markets have outperformed those in the U.S., reports Dina Hampton for InvestmentNews. European exports to developing nations have risen by 322%, versus 183% from the U.S. Moreover, U.S. earnings per share have only grown 164% since 2000, contrasted to 200% in the European area, 184% in Asia, 238% in Germany and 267% in Japan, according to Barclays. It is quite feasible the U.S. will continue to be shadowed by Europe in profits and GDP for years to come.

A comparison of the global regions show the S&P 500 SPDR (SPY) up 8.9% over the past 5-years, while iShares S&P Europe (IEV) is up 16.7% for the same time period and iShares MSCI EAFE (EFA) is up 16.4%.

Global5yr

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.