Stocks continued higher in June with the S&P 500 Index producing a gain of 2.1%. Foreign stocks, as measured by the MSCI EAFE Index, also rose but by not as much, gaining 1.0%. Europe, which is our sole developed-market focus outside the United States, declined last month, posting a loss of -0.1%.
While Europe has displayed some short-term weakness relative to the U.S., it has been just two consecutive months of underperformance. Our outlook on the region remains unchanged as two months hardly represents a trend. Since we first entered Europe in late 2012, we have witnessed numerous bouts of underperformance from the region relative to the U.S. Despite these periods of short-term underperformance, the longer-term trend in Europe has remained intact, and since our entry point, the performance of U.S. and European stocks are very similar…
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