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It is likely that the economic crisis linked to the coronavirus crisis is worse in the United States than in the eurozone. In order for this to lead to an overweight position in European equities relative to US equities, there must be a decorrelation between the two equity markets, per Natixis.

Key quotes

“It is to be feared that the coronavirus crisis will be even worse in the US than in the eurozone, due to perverse dynamics that may start from the sharp rise in unemployment and lead to a banking crisis in the United States.”

“In the past, when growth in the eurozone was stronger than in the US, the European market outperformed the US market. There is a link between growth gaps and equity market performance gaps between the United States and the eurozone.”