While the US market reached new all-time highs, Europe remains weak, despite a positive earnings season and slightly improved guidance.

In this short video we explain some of the reasons for this divergence, that continues to widen despite the calls from analysts to switch out of US and into EU stocks.

Daniel Lacalle. PhD in Economics and author of “Life in the Financial Markets”, “The Energy World Is Flat” (Wiley) and forthcoming “Escape from the Central Bank Trap”.

Image courtesy Tressis.