Europe equities and related ETFs are among this year's most obvious rebound stories. And there's widespread belief the asset class's 2025 showings could be repeated or exceeded next year.
European equities have been among the world's best performers this year, and that's saying something, That's because the Trump administration made the European Union (EU) one of its primary tariff targets. As of yet, the U.S. and the EU don't have a firm accord in place.
In recent years, U.S. equities sharply outperformed international benchmarks, giving rise to the term “U.S. exceptionalism.” Indeed, the gaps between domestic stocks and foreign counterparts, including European fare, were exceptional, but that tide is turning to start 2025.
In the early innings of 2025, few asset classes have shined as bright as European stocks and related ETFs. After a multiyear stretch of lagging U.S. equities by wide margins, European stocks are roaring back with a vengeance.
Throughout financial history, there's a plethora of instances in which a country's equity markets performed well while its economy stagnated and vice-versa. On the other hand, it's often helpful to a country's financial markets to have a strong-performing economy.