Investors seek diversification in European Equities amid US market concerns

Since the year began, more and more investors have been worried about the concentration of returns within the S&P 500, and more generally US large cap valuations.

Risk appetite nonetheless remains high, as equity markets should – all other things being equal – continue to be driven by a soft landing in the US, along with interest rate cuts expected in the second half of the year. With this in mind, investors are trying to diversify their equity exposure by returning to markets that are more attractively priced, such as Europe. Bank of America’s latest “Fund Manager Survey”, for the month of March, found that enthusiasm for European equities was the highest it had been since June 2020. There are several reasons for this.

JPMorgan European Discovery Trust plc (LON:JEDT) is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.

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