Europe’s stock market: no big tech, no big sweat

The prospect of looser fiscal policy in Germany isn’t the only significant reason MSCI’s Europe Index has outperformed its USA Index since Donald Trump returned to the White House. The ‘big-tech’ sectors’ fall from grace in the US has also been very important. That fall is consistent with our long-held view that US exceptionalism in equity markets will end definitively when the bubble in AI bursts.

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