Quarterly Seasonality of S&P 500 Returns vs. STOXX Europe 600 U.S. equity returns tend to be strongest relative to Europe during the second quarter. Image: Goldman Sachs Global Investment Research
Over the Following Time Horizons, Would you Rather Own U.S. or European Equities? Deutsche Bank’s survey of 400 financial professionals worldwide shows a strong short-term preference for European stocks over U.S. equities, but this trend is expected to reverse in the longer term. Image: Deutsche Bank
Performance – S&P 500 vs. Stoxx Europe 600 European stocks are delivering robust gains relative to the U.S. this quarter, but sustaining this momentum through year-end remains uncertain given past trends. Image: Bloomberg
European Defense Stock Returns vs. U.S. Defense Stock Returns The trend of European defense stocks outperforming U.S. peers is likely to persist in the medium term due to sustained increases in military spending and geopolitical realignments favoring local suppliers. Image: Gavekal, Macrobond
Valuation – PEG Ratio between U.S. and Europe The widening PEG ratio gap suggests European stocks are currently offering more attractive valuations compared to their U.S. counterparts, based on their respective growth prospects. Image: Goldman Sachs Global Investment Research
Europe Equity Fund Flows European equity funds have experienced a surge in inflows, reaching a two-year high and indicating a notable shift in market sentiment. Image: Deutsche Bank Asset Allocation
Returns – Magnificent Seven vs. European Banks European banks have outperformed the Magnificent Seven since January 2022. This outperformance is particularly noteworthy given the historical dominance of U.S. tech giants in global markets. Image: Goldman Sachs Global Investment Research
Europe’s GRANOLAS Stocks and Market Capitalization While Europe may not have the Magnificent Seven, it does have the GRANOLAS, which represents Glaxosmithkline, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, Astrazeneca, SAP, and Sanofi. Image: Alpine Macro
Europe Market – Annualized Average of Monthly Real Price Returns High and falling inflation is generally a favorable environment for returns. Image: Goldman Sachs Global Investment Research
Performance – U.S. Banks vs. Europe Banks Can European banks continue to outperform U.S. banks in 2023? Image: BofA Global Investment Strategy
Stocks – MSCI Europe Value vs. Growth and 10-Year UST Yield Will European value stocks underperform European growth stocks in the second half of 2023? Image: J.P. Morgan