EFA: Turning Bullish As The Valuation, Technicals, And Sentiment Stars Align

Nov. 27, 2022 2:56 AM ETiShares MSCI EAFE ETF (EFA)IWM, SPY, VGK, VPL4 Comments


  • Foreign stocks have endured several tough years relative to the U.S. stock market.
  • A break lower in the dollar has been a recent boon, and a fresh breakout in EFA suggests more rally potential in foreign equities.
  • EFA's valuation is also still very low even after a more than 20% rally off the October low.

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Investors should take notice of an emerging trend between domestic and foreign stocks. The iShares MSCI EAFE ETF (NYSEARCA:EFA) has bounced sharply off recent lows, and the move comes with impressive relative strength compared to

EFA vs SPY Relative Chart: EFA Rallies After Basing


Forward P/Es: EAFE Regions are Cheap


Investors Continue to Shun European Stocks

BofA Global Research

EFA: More Value-Oriented Compared to the S&P 500


Dollar's Pain, EFA's Relative Gain


EFA: Shares Breaking Above the 200-Day, Confirmed by RSI


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