United States investors look poised to invest heavily into European markets over the next quarter. The influences on such considerations appear to be mitigation of the possible impact of the U.S’s trade war with China and diversification to avoid any economic disruption caused by the upcoming U.S. Presidential Election in November this year.
This news also comes in the context of the ongoing coronavirus pandemic which has shattered the global economy. Manulife Investment Management's Head of Global Asset Allocation, Nathan Thooft said:
There is a perception that Europe on the whole has done a better job managing the Covid crisis, and sentiment the U.S. asset prices are stretched leading up to an uncertain election cycle.’
Optimism aside, the investments are yet to reveal themselves in current data and projections, meaning that investors may be uneasy about investing generally, during such an uncertain period.