Why Are European Stocks Beating the S&P 500 This Year?
1. European stocks outperform U.S., widest margin since 2000, per Morgan Stanley. 2. S&P 500 shows minimal growth, less than 1% year-to-date, contrasting Europe's gains. 3. Defensive spending and potential Ukraine reconstruction could invigorate European economy. 4. Valuation gap: European stocks at 14x P/E versus U.S. at 22x, attracting investors. 5. U.S. monetary policy uncertain, with fewer expectations for interest rate cuts.