The S&P 500 has consistently outperformed the Euro Stoxx 50. But what’s driving this? Here are some ideas.
1. Tech Power
The US is home to tech giants like Apple, Microsoft, and Amazon – companies that have fuelled massive gains and create the world's first trillion dollar companies. Europe lacks these tech titans, which is a big reason the Euro Stoxx 50 lags behind.
2. Low Rates,
High Growth After the 2008 financial crisis, low interest rates supercharged growth stocks. Investors were willing to bet big on future earnings, inflating asset prices and push the S&P 500 to new highs. Europe didn’t see the same boost.
3. AI
Interest rates have since risen, but the AI boom keeps US tech stocks climbing. Europe? It is still struggling to keep up. It's just not a tech economy
Any thoughts?
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