Allocators review positions on US/Europe valuation gap

Global asset allocation managers are reviewing their strategies as the valuation gap between US and European equities widens.

Several gloomy Q3 earnings forecasts released last week suggest US companies could be overvalued, and this increasing disparity with Europe is starting to alarm some global asset allocators. As uncertainty in the eurozone remains, many investors have found safety in the traditional long US/short Europe trade and think it has further to go, while others are now starting to reverse this trade and buy back into Europe to take advantage of the disconnect. John Ventre (pictured), multi-manager, Skandia Investment Group The disparity is much larger than it has been. This is because, firs...