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European and U.K. smaller companies

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We continue to see a case for European small-caps but our conviction is being tested by a bearish relative strength trend. While we see improving consumer confidence as positive for smaller U.K. Consumer Discretionary stocks, fundamental and technical indicators are less constructive. An improvement in intermediate breadth would support a more bullish view on smaller U.K. Consumer Discretionary stocks.

Ned Davis Research | Equities | Europe Focus | Monthly

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