‘Europe Is Attractive’—As US Markets Cool, European Stocks Are Surging In A Historic Rally
‘Europe Is Attractive’—As US Markets Cool, European Stocks Are Surging In A Historic Rally
by NoseRepresentative
‘Europe Is Attractive’—As US Markets Cool, European Stocks Are Surging In A Historic Rally
‘Europe Is Attractive’—As US Markets Cool, European Stocks Are Surging In A Historic Rally
by NoseRepresentative
17 comments
Anyone else who’s considering doing stocks (Investment Funds), since this shit in January has started, but is hesitating?
If we had balls she would push for market union and Eurobonds yesterday
We are still too divided to take advantage of the US decline
Have you said thank you to J.D Vance?
Europe will need to fix their demographics problem if they want to prevail long term.
I don’t think this is a long lasting structural “attractiveness”, it is just shadowing the demographical issues.i still think there is a major issue which is the lack of strong economical growth or at least a structural one which normally happens with a lot of debt (if managed well) but then there are many European governments that have their debt structured so bad that one cannot be sure if there should be more debt for growth.
Yet governments are so inefficient, lack of resources and youth; not sure if this “Europe is attractive” is even correct or it is just an “America is bad these days”. Considering all this talk is happening due to bad returns of American markets thanks to the orange guy.
“European Stocks Are Surging” means “Not doing as bad as US stocks” now? All european indexes are going down too. Just not as bad as US ones.
For years, Wall Street was the place to be. Tech giants soared, the economy seemed unstoppable, and investors didn’t look much beyond U.S. borders. But in 2025, that tide is turning—fast.
In a historic move, European stocks have pulled far ahead of their U.S. counterparts. The pan-European Stoxx 600 outperformed the S&P 500 by nearly 17 percentage points this quarter in dollar terms. That’s the biggest gap on record.
# Why Europe Now?
One of the main reasons investors are looking to Europe is simple: value. After years of underperformance, European equities have been considered cheap. That, paired with strong policy shifts—especially from Germany—has created what many are calling a rare opportunity.
“We have been waiting for a long time for this sentiment to change,” **Daniel Nicholas** of Harris Associates told [Bloomberg](https://www.bloomberg.com/news/articles/2025-03-30/europe-s-stock-rally-outpaces-wall-street-in-historic-run). “European companies have been mispriced.”
Germany’s plans to ramp up defense and infrastructure spending have played a major role. Investors who were underweight on the region are now rushing in. Bank of America’s latest survey found fund managers are the most overweight in Europe they’ve been in almost four years.
More than $21 billion has flowed into European stock funds this year through mid-March, [according](https://epfr.com/insights/global-navigator/glass-looking-half-empty-in-mid-march/) to EPFR Global. Germany is seeing the bulk of that money, with its DAX Index up 13% this quarter.
“The rally can go on for a bit. On a three-to-six month basis, Europe is attractive,” Jean Boivin at the BlackRock Investment Institute told Bloomberg.
# Currency and Sector Tailwinds
The euro is gaining ground, too. It was near parity with the dollar in February but jumped close to $1.10 in March. Ales Koutny at Vanguard International says hitting $1.20 by year-end is a “very real probability,” depending on how Trump’s tariff plans unfold.
The defense sector has been one of the biggest winners. Goldman Sachs reports its basket of European defense stocks is up 70% this year, with investors betting big on companies like Rheinmetall AG.
There’s also growing interest in firms tied to infrastructure and rebuilding projects, especially with long-term plans for Ukraine. Sectors like materials, industrials and utilities are gaining traction.
# It’s Not All Smooth Sailing
Despite the rally, not all European sectors are riding the wave. Automakers and healthcare stocks are lagging. And while construction and materials stocks have jumped, some say the gains may not last.
“From my conversation with managers in the sector, it is quite unlikely that the Ukraine reconstruction effort, when it comes underway, will translate into meaningful earnings,” said **Ariane Hayate** of Edmond de Rothschild Asset Management.
Still, optimism is hard to ignore. Nearly half of strategists in a Bloomberg survey have raised their forecasts for the Stoxx 600 since February.
“In more than 30 years in markets, I have rarely seen such a sudden surge in Euro-optimism,” said **Holger Schmieding**, chief economist at Berenberg. “Is the Europhoria justified? My answer is nuanced. Yes and yes – but not in every respect.”
You go guys! (From Canada 🇨🇦)
Gooood, gooooood!
Yes, yes, short the US stocks, inflate European ones, later make a U-turn and say the US is back in the game (under new ownership), just before selling off the inflated European stocks back to the Europeans, knowing they will start collapsing immediately after the announcement 😁 Trump’s dad was a corporate raider, he taught him well.
We’re winning
What people seem to omit is that a decent and reliable government that respects rule of law is an important stabilizing factor. And of course the US may rebound after a few months or years or never.
Last week, not so much.
“What have you done to asian people, all these years? List them all.”
My European investments is the only thing padding my overall portfolio.
Stoxx600 is down 3% this month. Where is the rally?
It’s time for Europe to stop investing billions in the US markets.
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