There Is a $7 Trillion Hole in Europe’s ‘Sell America’ Call

There are calls in Europe to “sell America” and invest that money at home in response to political tensions over Greenland. European businesses could sure use the boost after printing some $6.7 trillion less in revenue than their US peers last year – a gap that’s set to expand. And no, it’s not all about Big Tech.

Sergio Ermotti, chief executive officer of Swiss-based UBS Group AG, ruled out divestment from the US in a recent interview with Bloomberg TV, calling it a “dangerous bet” given the US’s “highest level of innovation.” For many, that innovation and its financial rewards conjure the US technology titans — the Magnificent Seven plus Broadcom Inc. — that account for nearly a third of the US and Europe’s combined stock market value. At their size, excluding them from a portfolio would be a big gamble indeed.