Since the S&P 500 bottomed on March 9, 2009 in the aftermath of the Financial Crisis, the index price has risen over three-fold and the MSCI World Index has doubled.  Disappointingly, European shares have risen only one-third of the S&P’s price gain in the same amount of time and lagged global equities considerably.  The question in our minds is whether this is a permanent condition or will European shares become competitive with other global equity markets.  European equities do offer compelling valuation measures, particularly versus the US, but the macro pressures facing the Euro region, the uncertain outcome of Brexit and the absence of fiscal policy support may limit the price appreciation of shares in the region.