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VGK
Market Watch
148 days

It’s been 25 years since European stocks beat U.S. rivals this way. Deutsche Bank still prefers MEGA to MAGA. - MarketWatch

1. European stocks outperformed U.S. equities for the first time in 25 years. 2. VGK gained 13% this year while S&P 500 fell by 4%. 3. Deutsche Bank anticipates further P/E gap tightening, favoring European stocks. 4. Strategists project a potential 6% outperformance of Stoxx Europe 600 over S&P 500. 5. Political uncertainty influenced growth expectations and P/E ratios.

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FAQ

Why Bullish?

The strong performance of VGK amid U.S. declines suggests positive sentiment. Historical examples show that geopolitical factors can shift investor preferences to European equities, enhancing VGK’s attractiveness.

How important is it?

The article discusses a significant shift in market trends favoring Europe, directly impacting VGK. The projected outperformance contrasts sharply with U.S. equities, indicating a shift that investors may act on.

Why Short Term?

Recent performance trends indicate immediate effects from economic and political developments. Example: Positive shocks in Europe influenced by ceasefire talks could rapidly boost VGK.

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