Insight | Stars Align

European stock markets have lagged behind the US since the financial crisis, but this has created opportunities for long-term investors as European companies are underowned.

Despite a strong start in 2024, with the MSCI Europe Index up 9.05%, it was outperformed by the US S&P 500 due to its tech dominance.

This leaves European stocks trading at near historic valuation discounts compared to the US, presenting potential for relative outperformance. Europe's top companies are globally diversified, and their strong business models and sustainable growth offer potential for long-term returns, even amid economic uncertainty.