During the last decade, money has flowed to American tech companies while Europe has been on the decline with lower growth, says Landeborn.
It has been much more in with growth and IT companies. That's where the big revenues have been, while interest in European banks and European industry has been low, says she.
But towards the end of last year, a shift began. Now, more money is flowing from the USA to Europe than before. The euro is the strongest it has been in three years against the dollar.
There is an inflow to European stocks. Bond prices have also fallen in the USA and risen in Europe, which is why the euro is rising, says Landeborn.
Overdone development
The shift in money flows is also evident in a survey from Bank of America from last week, which shows that global fund managers now have an overweight position in the eurozone while the USA is at the bottom. Maria Landeborn says that it is a major change compared to before.
According to independent stock analyst Peter Malmqvist, the shift actually began after Donald Trump was elected president in November last year.
Since the turn of the year, the trend has been clear.
Investors began to wonder if the development on the US stock exchanges was overdone. Was American industry really that much better? Were IT companies really that much better?
Many large institutions and banks decided around the turn of the year that they believe in Europe. It became a new trend, says he.
European stock exchanges have performed better than Wall Street, actually since Trump was elected, according to Malmqvist.
Unfortunately, it doesn't apply to the Stockholm Stock Exchange. I think it's because we are an exchange with very many international companies. When the USA does poorly, Sweden is dragged along, says he.
Tariffs sank
Since Donald Trump announced his tariffs on April 2, Wall Street has performed less poorly than European stock exchanges.
At first, it hit the USA harder, but as he has come out with various exemptions for, among other things, home electronics and the automotive industry, there has been a greater recovery in the USA, says Maria Landeborn.
But the USA has still fallen more since the turn of the year due to the tariff threat.
Which stocks in Europe have performed the best?
Low-valued value stocks. These are companies with lower growth and lower valuations than growth companies, but are seen as more stable. Such as banks and industry, says Landeborn.
Something that reflects a belief in increased investments in Europe going forward in both defense and infrastructure.
Landeborn emphasizes, however, that tariffs and uncertainty are negative for everyone, including Europe.
The positive thing about Trump's election victory and how he is proceeding is that it has forced Europe to be more decisive. Trump has become a wake-up call for Europe, says she.
