Europe Will Underperform the Global Market Next Year: BofAML’s Raedler

The video discusses the inflows since June 2017 and questions the predictive power of such statistics for future performance. It highlights the poor growth in Europe since 2018, with signs of improvement due to domestic drivers and a weakening global growth backdrop. Despite optimism, Europe is expected to underperform the global market due to mild global growth and a strengthening euro. Two potential factors could change this: a strong global acceleration or euro weakness not driven by economic factors.

How does the speaker view the predictive power of statistics related to positioning and flows?

What has been the trend of growth in Europe since the beginning of 2018 according to the speaker?

What does the speaker suggest about the equity market's current position in relation to the trade discussed?

What are the main reasons for the expected underperformance of Europe compared to the global market next year?

What factors could potentially tip the balance for Europe to avoid underperformance?