over 2 years ago • 1 min
French stock set a fresh all-time high this week as the benchmark CAC 40 Index finally recouped its dot-com bust losses.
French stocks are enjoying a moment in the sun after underperforming many other global markets during the 2000s and 2010s. Luxury stocks LVMH, Hermes, and Kering account for about a quarter of the CAC 40’s gains in 2021, while TotalEnergies has rallied with the price of oil.
As the chart above shows, 100 euros invested into the CAC 40 on September 4th, 2000 – just before the index began a 65% plunge that lasted 18 months – would now be worth a grand total of 100.71 euros. The same sum invested into the pan-European Stoxx Europe 600 Index would be worth a little over 119 euros. And $100 invested into the all-conquering S&P 500 of US stocks would be worth an impressive $307.
Even after this year’s gains, however, French stocks are far from expensive compared to peers. The CAC 40 is trading at 16.5x projected profits, compared to 16.9x for the Stoxx 600 and 22.6x for the S&P 500.
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