”This article is publicly available on the DB Research Institute website here Europe’s financial markets have been losing ground to the US for well over a decade. Concerns about this have recently grown to a crescendo as companies with European listings have moved them to the US to take advantage of higher valuations and deeper capital markets. Despite the recent questions about the decline of US exceptionalism, the appeal of US markets does not appear to be waning. The problem for Europe is two-fold. First, European companies routinely generate thinner returns than US companies. Second, several megatrends are set to hurt the continent’s companies more than their US peers. They include being caught in the middle of trade and military geopolitical conflicts, the domestic political shift to the hard-right, concerns about rising sovereign debt, and ageing populations.”
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Morten W. Langer
