It is about the same time when it become very easy for casual users to start investing through internet. Of course there are many other factor, maybe even bigger ones, like response to the crisis etc
Yet, it is still funny how Europeans complain about European companies being uncompetitive, while religiously putting all their savings into US stock market. Every financial advice on the internet i have ever seen is like “yea bro, just put it in S&P 500”. There is just no way that this does not have massive effect in all of this
[deleted]
What happened? How did S&P get so far up?
Can someone explain me this graph like I’m 5? I really don’t understand thx in advance
You guys ok over there?
Minimal wage grew in the EU percentagly. That’s all I wanted to say.
Edit: Funny dislikes while true. 😂
Americans are a much more exploitable workforce, less unions etc.
It is mainly the US tech companies that really hold up our market. We call these companies the magnificent seven. Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, Tesla. Literally NVIDIA itself can hold up the entire US stock market by itself some days, or it can tank the market other days.
I know Europeans really don’t want to hear this but I think your tax structure and regulations might be worker friendly, but they stifle innovation and make Europe not competitive.
US economy performed much better. However EU stocks are mostly companies in mature sectors with high dividend yield. A chart with Total Shareholders return (which include dividends) would not be so catastrophic
A rather embarrassing result of our inability to compete with America but I cope by telling myself that this is in small part the result of US overspending.
In 2009 debt was a percentage of GDP in the EU and the US stood at about 75%. Today (2003) the EU one is 82%, while in the United States it has gone up to 123%.
History will tell whether our choice of austerity has been correct, but I am rather inclined to believe that the US dominance in the global profit share and their monetary hegemony makes them a clear favourite, regardless of the high debt burden.
the US is mainly billionaire money pumping constantly and raising stock prices.
I remember after 2008, and especially after the Greek crisis, US media used to say A LOT of bad things in Europe. Like we don’t like working, because we live off of debt, blah blah blah. While there was a very small truth behind it (Europeans do take more vacations and Southern states have higher public debts), it was vastly exaggerated to the point of making it seem like our economy was going to crash in a downwards spiral until we became Africa.
It was so obvious that they were trying to attract investments into the US.
From this graph, I would say they succeeded. SP500 went up and Euro Stoxx stayed almost flat because people reading that actually invested a lot in the US and very little in Europe.
Of course this must be the sum of several causes, just highlighting one of them.
People who think stock markets go up because of reasons and not because of speculative Jenga game, please go book therapy.
How easy is it for your average european to invest in their market? Just curious.
Even though I am on a visa here in US its as easy for me to invest as it is for US citizen. There are dozens of apps where you can trade for $0/ trade.
Because all the money flows into that one segment of the market resulting in a flywheel effect because of digital platforms that allow easy access towards the US market, ETF’s and herd mentality. Creating artificial bubbles of concentrated money into just a few companies that lead the S&P ever lore upwards. What happens when a chunk of that money leaves again, no one knows since this is unprecedented in history.
Doesn’t change the trend since 2008, but Stoxx 50 is not reasonable for any comparison.
What scale is the graph on the right? Did US returns make 0.01% more? Or is it many times more?
Also how is returns defined? Stock market return is not the same as the index value
The European Central Bank simply does not create enough Euros to stimulate demand and investment. The Fed, in conjunction with high US fiscal deficits, creates the right amount of US dollars to grow the economy. Austerity is a failed neoclassical economic theory.
As the French Commissioner Breton said, the EU cannot be champion in the business, but we will be champions in Regulation!
Why did the US recover from the 2008 crysis so well while the european nations did not?
Keep in mind that the US triggered the 2008 crisis.
Compare the GDP of the US over time with the GDP of Germany, France, UK e.g.
80% of top European companies were founded before 1950 and most of them have nothing to do with tech. SAP was founded in 1972, Airbus in 1970. Those 2 are basically the only relevant tech companies founded after 1970 here. Meanwhile US has 7: Meta, Alphabet, Amazon, Nvidia, Cisco, Apple, Microsoft. Their worth is a lot more than what we have today. Even if you are considering to get a high paying job in tech in Europe most of the times you will end up in an American company. And I didn’t include medium size companies like Uber which pay top of the market.
So basically tech industry causes this gap. Bureaucracy and regulations are killing innovations in EU which is why many startups fail or the potential founders decide to leave for US or some place else. Best example here is Stripe.
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[Source](https://www.ft.com/content/68ca6eb3-082f-4bea-b05e-741c4a214b40)
It is about the same time when it become very easy for casual users to start investing through internet. Of course there are many other factor, maybe even bigger ones, like response to the crisis etc
Yet, it is still funny how Europeans complain about European companies being uncompetitive, while religiously putting all their savings into US stock market. Every financial advice on the internet i have ever seen is like “yea bro, just put it in S&P 500”. There is just no way that this does not have massive effect in all of this
[deleted]
What happened? How did S&P get so far up?
Can someone explain me this graph like I’m 5? I really don’t understand thx in advance
You guys ok over there?
Minimal wage grew in the EU percentagly. That’s all I wanted to say.
Edit: Funny dislikes while true. 😂
Americans are a much more exploitable workforce, less unions etc.
It is mainly the US tech companies that really hold up our market. We call these companies the magnificent seven. Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, Tesla. Literally NVIDIA itself can hold up the entire US stock market by itself some days, or it can tank the market other days.
I know Europeans really don’t want to hear this but I think your tax structure and regulations might be worker friendly, but they stifle innovation and make Europe not competitive.
US economy performed much better. However EU stocks are mostly companies in mature sectors with high dividend yield. A chart with Total Shareholders return (which include dividends) would not be so catastrophic
A rather embarrassing result of our inability to compete with America but I cope by telling myself that this is in small part the result of US overspending.
In 2009 debt was a percentage of GDP in the EU and the US stood at about 75%. Today (2003) the EU one is 82%, while in the United States it has gone up to 123%.
History will tell whether our choice of austerity has been correct, but I am rather inclined to believe that the US dominance in the global profit share and their monetary hegemony makes them a clear favourite, regardless of the high debt burden.
the US is mainly billionaire money pumping constantly and raising stock prices.
I remember after 2008, and especially after the Greek crisis, US media used to say A LOT of bad things in Europe. Like we don’t like working, because we live off of debt, blah blah blah. While there was a very small truth behind it (Europeans do take more vacations and Southern states have higher public debts), it was vastly exaggerated to the point of making it seem like our economy was going to crash in a downwards spiral until we became Africa.
It was so obvious that they were trying to attract investments into the US.
From this graph, I would say they succeeded. SP500 went up and Euro Stoxx stayed almost flat because people reading that actually invested a lot in the US and very little in Europe.
Of course this must be the sum of several causes, just highlighting one of them.
People who think stock markets go up because of reasons and not because of speculative Jenga game, please go book therapy.
How easy is it for your average european to invest in their market? Just curious.
Even though I am on a visa here in US its as easy for me to invest as it is for US citizen. There are dozens of apps where you can trade for $0/ trade.
Because all the money flows into that one segment of the market resulting in a flywheel effect because of digital platforms that allow easy access towards the US market, ETF’s and herd mentality. Creating artificial bubbles of concentrated money into just a few companies that lead the S&P ever lore upwards. What happens when a chunk of that money leaves again, no one knows since this is unprecedented in history.
Doesn’t change the trend since 2008, but Stoxx 50 is not reasonable for any comparison.
What scale is the graph on the right? Did US returns make 0.01% more? Or is it many times more?
Also how is returns defined? Stock market return is not the same as the index value
The European Central Bank simply does not create enough Euros to stimulate demand and investment. The Fed, in conjunction with high US fiscal deficits, creates the right amount of US dollars to grow the economy. Austerity is a failed neoclassical economic theory.
As the French Commissioner Breton said, the EU cannot be champion in the business, but we will be champions in Regulation!
Why did the US recover from the 2008 crysis so well while the european nations did not?
Keep in mind that the US triggered the 2008 crisis.
Compare the GDP of the US over time with the GDP of Germany, France, UK e.g.
80% of top European companies were founded before 1950 and most of them have nothing to do with tech. SAP was founded in 1972, Airbus in 1970. Those 2 are basically the only relevant tech companies founded after 1970 here. Meanwhile US has 7: Meta, Alphabet, Amazon, Nvidia, Cisco, Apple, Microsoft. Their worth is a lot more than what we have today. Even if you are considering to get a high paying job in tech in Europe most of the times you will end up in an American company. And I didn’t include medium size companies like Uber which pay top of the market.
So basically tech industry causes this gap. Bureaucracy and regulations are killing innovations in EU which is why many startups fail or the potential founders decide to leave for US or some place else. Best example here is Stripe.
Money printer go brrrrrrrr