economy
Secret Outperformer: Dispelling the 'Myths' About an Unloved Stock Market
European markets fly under the radar when compared with larger and more liquid U.S. markets, but Goldman Sachs offered to dispel some of the myths them.
TL;DR
- European equities historically attract less investor enthusiasm compared to U.S. and some Asian markets.
- The pan-European Stoxx 600 index has been resilient in 2026, showing a 10% increase.
- Goldman Sachs suggests European banks have outperformed the 'Magnificent 7' since 2022.
- Since the start of 2025, the Stoxx 600 has outperformed the S&P 500.
- Goldman Sachs disputes the notion that Chinese competition is a major headwind for most of Europe's largest sectors.
- The European autos sector, representing only 1% of market cap, is facing a structural crisis with sales slump and competition from China.
- BNP Paribas believes Europe is more likely to be an AI beneficiary than a developer.
- Europe being behind in AI development may provide investors a hedge against AI-related risks.