Go Long Europe, Short US?

The last time that I remember every single analyst talking about going long the US and short Europe was back in May 2010.  I don’t know how to use Google Trends well enough, nor do I have access to a summary of all the research reports then and now to prove it, but that is my gut feel.  I struggle to find anyone not saying that the US will outperform Europe.  That reminds me so much of May 2010.

Here is what happened then

Source: Bloomberg

Over the course of the next couple of months the S&P underperformed Europe.  SX5E is the Euro Stoxx 50 index, it is in EUR.

The IEV is an ETF that matches the Europe 350 index and is in dollars.