Europe broke out last week from a YTD bottoming process, marking a bullish trend reversal. Auto stocks accompanied this breakout. Seen below, the STOXX Europe 600 Autos & Parts Index also reversed a 20-month relative strength decline (vs. MSCI ACWI), indicating a renewed phase of outperformance. Given the similar developments seen in the U.S. (F, GM) and Japan (TM, HMC), we recommend adding exposure to this theme. • Taken within the larger context, the breakouts in auto stocks are an extensio...
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