{"id":42192,"date":"2025-08-03T11:35:46","date_gmt":"2025-08-03T11:35:46","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/03\/retail-investors-shift-focus-to-europe-as-us-valuations-stretch\/"},"modified":"2025-08-03T11:35:46","modified_gmt":"2025-08-03T11:35:46","slug":"retail-investors-shift-focus-to-europe-as-us-valuations-stretch","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/08\/03\/retail-investors-shift-focus-to-europe-as-us-valuations-stretch\/","title":{"rendered":"Retail investors shift focus to Europe as US valuations stretch"},"content":{"rendered":"
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As retail traders begin to tire of short-lived rallies in meme stocks like Krispy Kreme<\/a> and Kohl\u2019s, a broader and potentially more sustainable trend is taking shape in global markets. <\/p>\n

A growing number of individual investors are rotating into European equities, betting that stocks across the Atlantic are poised to outperform their US counterparts \u2014 a rare dynamic after years of American dominance.<\/p>\n

That shift gained renewed momentum on Friday after a weaker-than-expected US jobs report<\/a> sent the dollar and major US indices lower. <\/p>\n

The move reignited interest in the narrative that global diversification \u2014 particularly toward Europe \u2014 could offer stronger returns in the current geopolitical and economic climate.<\/p>\n

Defense and diversification drive European momentum<\/h2>\n

European defense firms have emerged as clear beneficiaries of the current macro environment, particularly in light of President Donald Trump\u2019s \u201cAmerica First\u201d policy stance and the subsequent reorientation of global defense spending. <\/p>\n

Germany\u2019s Rheinmetall AG has more than tripled in dollar terms this year, while Italy\u2019s Leonardo SpA has nearly doubled. <\/p>\n

Both firms have attracted significant retail interest, sometimes even being labeled as “meme stocks” due to their rapid gains and growing fan base among online investors.<\/p>\n

The appeal extends beyond defense. France\u2019s BNP Paribas SA and Finland\u2019s Nordea Bank Abp have also seen notable growth, while well-known European blue chips such as Nestl\u00e9 SA, Bayer AG, and Adidas AG have become increasingly popular among US-based investors.<\/p>\n

According to Samuel Nofzinger, general manager of the trading platform Public Holdings, retail appetite for international stocks has been more stable than the volatile flows seen in traditional meme names. <\/p>\n

\u201cMost people who have gone into international names are holding them,\u201d he said.<\/p>\n

ETFs capture record flows as US markets lag<\/h2>\n

European equity-focused exchange-traded funds (ETFs) have drawn more than $12 billion in inflows so far in 2025, positioning the asset class for its strongest year since 2021. <\/p>\n

Vanguard\u2019s European ETF (VGK) alone has attracted over $5 billion year-to-date, reversing the $2 billion in outflows it saw last year.<\/p>\n

The S&P 500 has gained 6.1% in 2025 through Friday\u2019s close \u2014 a modest performance when compared with the 31% rally in Germany\u2019s DAX and the 17% rise in the UK\u2019s FTSE 100, both measured in dollar terms. <\/p>\n

For retail investors, the outperformance and the geopolitical backdrop made Europe a compelling choice. Joseph Begonis of Tampa recently invested $10,000 in VGK, citing increasing European defense spending as a key factor. \u201cI\u2019m a believer that you follow the money,\u201d he said.<\/p>\n

Weaker dollar, stretched US valuations spur portfolio rebalancing<\/h2>\n

The appeal of European stocks has also been amplified by a weaker dollar and perceptions that US valuations have become excessive. <\/p>\n

Many financial advisors are now encouraging clients to increase exposure to foreign equities as a hedge against potential US market downturns.<\/p>\n

Retail investors like Lia Holmgren of Miami are following suit. <\/p>\n

\u201cEurope had a really hard time for the past decade, so there\u2019s a lot of value,\u201d she said, noting that she\u2019s added both Rheinmetall and Leonardo to her portfolio alongside VGK. <\/p>\n

For Holmgren and others, the case for international diversification is becoming harder to ignore.<\/p>\n

The post Retail investors shift focus to Europe as US valuations stretch<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

As retail traders begin to tire of short-lived rallies in meme stocks like Krispy Kreme and Kohl\u2019s, a broader and potentially more sustainable trend is taking shape in global markets. A growing number of individual investors are rotating into European equities, betting that stocks across the Atlantic are poised to outperform their US counterparts \u2014 <\/p>\n","protected":false},"author":1,"featured_media":42193,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-42192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=42192"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/42192\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/42193"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=42192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=42192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=42192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}