Goldman: Hedge funds ditch US, flood into Europe at record pace this year

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It’s shocking to see hedge funds desperately dumping U.S. exposure to dive into Europe this year. The logic behind it escapes me, but the numbers tell the tale. Goldman’s own analysis shows a steady shift away from the U.S., with hedge funds now practically flooding into Europe as if it’s the land of milk and honey. But the reality on the ground is a far cry from the dream they’re chasing.

Let’s get this straight – Europe’s business conditions are a disaster. No earnings per share (EPS) growth, sales are crawling at a snail’s pace, taxes are sky-high, and the entire region is weighed down by suffocating regulation and enforcement. Multinational corporations based in Europe? They’re almost entirely dependent on U.S. markets for survival. Europe isn’t generating new business ventures; it’s falling into an economic graveyard, with the public sector soaking up every last ounce of energy and resources. And if you think the defense spending is a sign of Europe’s resurgence, think again. They’re throwing away money trying to fight a proxy war with Russia, while neglecting their own internal crises.