Posted 3/30/2024, 9:00:00 AM
Investors Bet on Cheaper Europe Stocks to Lead Next Rally as U.S. Tech Runs Out of Steam
- Investors are betting on Europe to drive the next leg of the global stock rally as US tech stocks seem expensive
- Hedge funds have the highest allocation to European stocks relative to global stocks on record
- Euro area shares have outpaced US stocks in March; investors expect more gains if economic growth rebounds
- Europe stocks remain cheaper than US stocks on valuation metrics even after recent gains
- Estimated short positions on European stocks are at the lowest level in at least a decade, signaling improved sentiment
