Among them, the Nasdaq sell-off taking place here in the United States has rippled across the globe. Against this backdrop, European technology, media and telecom stocks have given back some of the ground they gained in 1999. Also, the rising cost of oil and the declining euro have been a particularly negative combination for European equities this year. Oil is priced in dollars, which means it costs more euros per liter of petrol for the European consumer than before, cutting into disposable income. Higher energy taxes in Europe versus here in the United States exacerbates the situation.
Currencies move up and down quite a bit in response to what can be short-term influences.
This imbalance creates a short-term negative for the euro, as euros have been sold to buy dollars. But, longer term, we believe that this European investment trend is very positive, and that these European acquirers are positioning themselves to be better performers. In the late 1990s, the United States dominated the global economy. Yes, we see many indications that the trends may be changing. Projections indicate that global growth may be more balanced among the United States, Europe and Asia.