Why European Stocks May Outperform the U.S. in the Year Ahead

For many investors, it’s been U.S. or nothing. For nearly twenty years, stock market performance has been dominated by the U.S. Elsewhere, performance has been less stellar, with decent numbers that do not come close to the returns of the broader S&P 500. With that in mind, many investors have become mainly U.S.-focused with their portfolios.

However, they may want to rethink that.

In the current environment, U.S. market dominance could be ending. At least, Europe is catching up. With cheaper valuations, strong growth, and surging dividends, European stocks could be the buy of next year. Investors, therefore, must reposition their portfolios and reconsider their current allocations.