What’s happening in Europe?

Zoomer | January 1st, 2006

Q –  Can you give me your general feelings towards European equity funds? I am very disappointed with my returns to date, particularly Dynamic Europe and Fidelity European funds. – S.D.


A – European funds have gone through a very rough year and they are still struggling. Part of the problem has been the decline of the euro, which has exacerbated the poor returns on European stock markets in funds that are not currency-hedged into U.S. or Canadian dollars.


Outside North America, Europe is our top-rated investment area, but it will probably be a while yet before we see a turnaround. You’ll have to decide if you’re in for the long haul or want to pull the plug and look elsewhere. Unfortunately, looking at the international scene there is really nothing exciting right now, except perhaps Latin America which is notoriously volatile. – G.P.