“European funds made good gains during October. Europe seems to remain a perpetually unloved region with retail investors,” says Richard Troue, Head of VCT Research at Hargreaves Lansdown.
“In recent years Europe’s political and economic travails have discouraged investors. Yet many companies have prospered regardless and European stock markets have, on the whole, performed well. This shows the importance of divorcing economic prospects from those of companies and the stock markets. Europe is home to many dynamic, successful businesses, both large and small, that are not just reliant on domestic European economies. The European region has more than its fair share of economic and political problems, but this is not a good enough reason to ignore the market.
“Elsewhere global emerging markets continued to stage a mini rebound, led by further stimulus from China, continued improvement in global growth and the decision by the US Federal Reserve to delay the tapering, or slowing, of quantitative easing.
“Despite pausing for breath during October Japan funds are still faring well over the year to date, along with other developed markets including Europe, the UK and the US. Various smaller company sectors dominate the best performing sectors year to date as we start to see a global recovery coming through.”