European Stocks Undervalued Relative to U.S.: Ark Capital CIO Says

The video discusses the current market positioning and the potential for a Santa rally, highlighting the impact of late 2018 on investor confidence. It compares the valuation of US and European stocks, noting that European stocks are undervalued due to investment flows favoring the US. The discussion shifts to monetary policy, suggesting that the accommodative stance in the eurozone may redirect investment flows there. Finally, the speaker outlines a shift in investment strategy from US to European equities for the coming year.

What is the main reason for the undervaluation of European stocks compared to US stocks?

• Most investment flows have been directed towards the US

• Higher interest rates in Europe

• Political instability in the US

• Stronger economic growth in Europe

What is the Federal Reserve's current stance on monetary policy?

• Cutting rates significantly

• On hold with a potential small rate increase

• Aggressively increasing rates

• Uncertain and unpredictable

Why might investment flow back into the eurozone?

• Stronger economic growth in the US

• More accommodative monetary policy in the eurozone

• Higher inflation rates in Europe

• Political stability in the US

What was the speaker's investment strategy for the current year?

• Short on both US and European equities

• Investing equally in US and European equities

• Long on US equities versus European

• Long on European equities versus US

What change in investment strategy does the speaker predict for the next year?

• Switching to favor European equities

• Continuing to favor US equities

• Focusing on emerging markets

• Investing in Asian markets