While the Nasdaq crashed 6% in a single day, European stocks barely moved, and in 2026, Europe’s STOXX 600 is actually beating the S&P 500. In this video, we break down why: Europe is far less exposed to the AI bubble, trades at a ~30% valuation discount, and has untapped growth potential through the Single Market, the Capital Markets Union and Eurobonds, with €10 trillion in European savings just sitting in bank accounts. So is it finally time to invest in Europe or will we waste this moment like we wasted the Draghi Report?
If you want to look at it on youtube: https://www.youtube.com/watch?v=Rr0RoXuUsCE
Also, title slightly edited to remove clickbait.
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I moved my life savings to a European ETF when Trump entered the picture mostly because I think it’s unethical to support the US.
Which ETF is that?
Wait, I have to correct myself, it’s not an etf but a regular index-tracking equity mutual fund that my bank offers in sweden. I chose this one specifically because it had low fees.
It is always good to invest in your home country and continent. Sending your resources far away, might give you individual and short term gains, but you will always pay the price of not investing where you live.
Europe is actually a great place to live, lets not waste it for a few pieces of worthless printed paper or numbers in a computer, that the other side can create at will at no cost.
Counterpoint: Investing in the country where you live, earn wages and are dependent on social security and the general financial stability of the region, does not support diversification. So from a pure investment perspective it would be wiser to diversify geographically.
In general, I agree with your sentiment.
Counter-counterpoint: to some (small, but non-zero) extent, you want that lack of diversification, because (in terms of the broad market index) the investments are likely to move in the same direction as your region’s economy as a whole (or in other words, to at least “keep up” with your standard of living, for better or worse). If all of your investments are foreign, you end up overexposed to things like currency exchange risk.
Yes, I meant geographical diversification as in including foreign markets, not exclusively.
you want that lack of diversification
If all of your investments are foreign, you end up overexposed
I don’t really understand, don’t these two contradict themselves? To make it clear, I am against exclusively investing in the same region as you earn your wage, simply put.
What I’m saying is that some home bias or portfolio “tilt” isn’t bad, because that’s the market your spending is exposed to and so you want your investments to follow along, at least a little.
Most people err in the opposite direction, of way too much home bias. I’m just being a contrarian warning about overcorrecting.
Concrete example (with numbers from here): “European investors hold 80%+ local equities, even though Europe represents only 20% of global market cap.” What I’m saying is that holding maybe 25% local equities instead of 20% is still okay.
European stocks have been doing well over the last few years, for instance the German DAX. In addition, a lot of money is flowing from the USA into German companies; hundreds of very exciting startups in the area of Defence and industrial AI, same seems true for Netherlands, Scandinavia; investors with deep pockets flock into that market. If you do not live in Europe, you could look at an ETF around European value stocks (ASML, SAP, Leonardo, Airbus, Rheinmetall, Thalis, the big Pharmas Novartis, Roche, AZ…) or find a more speculative ETF containing ai / defense startups. Having said that, investors may be too late to the game… the institutional investors started buying when the market was low, not sure how long that will last; no overheating in sight, but the big invest profits may slow down.
I’m not sure about the untapped part of Single Market. Energy transition is probably the biggest growth opportunity in Europe
My european ETFs in euros are far more stable than the american ones in usd.
I’d rather put my money on reliable investments in our own economy and get a slow growth than throw it on the AI casino, uh… I mean the SP500.
I am European and I don’t think so. Even in the good scenarios where Europe is a beacon of freedom and ethics I believe that the financial system won’t be kind to us.
Can you explain the “won’t be kind to us” part?
Europeans are born with about 1000 kg of pessimism on their backs.
This is true
That emotion is part of the stock market prognosis, there is good money to be made in European stocks.
Like will either complete gut any safety nets etc and turn us into USA 2.0 with huge wealth divide or just not invest at all because they can’t extract enough money.
You say it like “enough money” meant “all the money they can get in the best case scenario”. For companies any profit is good. They will get as much money as we let them and they will invest as long as it’s more than 0.
… complete gut any safety nets … huge wealth divide …
So if you apparently look for regions or countries with better safety nets where wealth gaps are narrower than in Europe, where would you invest?
