Published on Marketwatch.com
One of the biggest themes in the market right now is the migration from U.S. to international stocks, namely European equities as they present better relative value than their U.S. counterparts.
Looking at a chart of popular European equity exchange-traded funds, you might think how could that be? They haven’t performed that well at all. Yet upon second look and backing out the currency relationship between the U.S. dollar and euro, it becomes clear that the ECB’s commitment to stimulus and growth has goosed prices.