Sputtering Europe and Jittery China Add Bull Case for US Stocks
Sep 02, 2023 - bloomberg.com
The ongoing stagflation crisis in Europe and a property downturn in China are reinforcing the dominance of the US stock market for equity investors. As of 2023, the S&P 500 is leading the Stoxx Europe 600 by about eight percentage points, marking its potential eighth year of outperformance in the past decade. This is largely due to the buzz around artificial intelligence, which is overshadowing fears of economic recession and high valuations.
The economic struggles in Europe and China are bolstering the case for US stocks. Despite the global economic uncertainties, the US market continues to be an attractive option for investors, primarily due to its resilience and the promising growth of sectors like artificial intelligence.
Key takeaways:
Europe's stagflation crisis and China's property downturn are making the US stock market the most attractive option for equity investors.
With four months left of 2023, the S&P 500 is leading the Stoxx Europe 600 by about eight percentage points.
The S&P 500 is set to outperform for the eighth year in the past decade, driven by the artificial intelligence buzz, despite economic recession fears and high valuations.
The economic struggles in Europe and China are strengthening the bull case for US stocks.
