Europe: A Brave New Opportunity?

Sometimes, all you need is a picture.

A picture is worth a thousand words.

If you need proof of this, just look at this image here:

Source: Nodegoat

What you’re seeing is a heat map:

• It shows all the recorded battles in human history — going all the way back to 2,500 BC.

• What you’ll immediately notice is how much fighting has happened in Europe. It’s astonishing, isn’t it? The temperature here is so feverish, you might have trouble picking out individual dots.

• Yes, historically, Europe has been the most violent continent on Earth. The total number of deaths by hostile conflict here is higher than those of any other region.

• In fact, the 20^th century alone saw the outbreak of two world wars here. They completely devastated Europe. Transforming the social landscape forever.

It’s sobering to think about, isn’t it? Fortunately, these terrible events have also paved the way for some fascinating progress:

• The European Union was established, with the goal of preventing the trauma of another world war. This was done by interlocking the economies of Europe. This meant fluid borders, a common currency, and a shared destiny.

• By most accounts, this experiment has worked. Today, the European Union — plus the United Kingdom — is prosperous and peaceful. The regional economy has also come to rival that of the United States.

However, European integration doesn’t come without controversy. As the old memories of continental war fade away, the most immediate concern these days is about regulation and compliance:

• For decades now, it has been the elite bureaucrats in Brussels who have been calling the shots. Sometimes this comes across as preachy. Sometimes this comes across as overbearing. And as result, this has created its fair share of unhappiness.

• This is why we saw Brexit happen in 2016. Many British people simply got tired of the EU’s apron strings. So they decided to cut loose.

• This has created a measure of independence in terms of national policy — but, still, British destiny remains firmly tied to the European common market. The EU continues to be the UK’s largest trading partner.

• Indeed, for all its faults and frailties, the European Union is an economic powerhouse. With 27 member nations, it has a GDP of almost USD $20 trillion. This makes it a heavyweight not to be ignored.

Now, in 2024, we are seeing a new quantum shift happening in finance:

• Some hedge funds are in the process of changing their global strategy. They are increasing their exposure to European stocks, while decreasing their exposure to American stocks.

• This is both radical and surprising. In fact, this could very well be the biggest change in money management in 15 years.

• Here are three compelling reasons why a sharp pivot to Europe is now on the cards…