It’s been 25 years since European stocks beat U.S. rivals this way. Deutsche Bank still prefers MEGA to MAGA. - MarketWatch
Mar 24, 2025, 6:25 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
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.
AI summary
What happened, with direct paths to the underlying reporting
European stocks outperformed U.S. equities for the first time in 25 years. VGK gained 13% this year while S&P 500 fell by 4%. Deutsche Bank anticipates further P/E gap tightening, favoring European stocks. Strategists project a potential 6% outperformance of Stoxx Europe 600 over S&P 500. Political uncertainty influenced growth expectations and P/E ratios.
European stocks outperformed U.S. equities for the first time in 25 years.
VGK gained 13% this year while S&P 500 fell by 4%.
Deutsche Bank anticipates further P/E gap tightening, favoring European stocks.
Strategists project a potential 6% outperformance of Stoxx Europe 600 over S&P 500.
Political uncertainty influenced growth expectations and P/E ratios.
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