Strategen has published a new market outlook arguing that equity markets have further room to run, citing the persistent and widening performance gap between US and European stocks as a key driver.
The bank’s analysis highlights the massive divergence in returns over the past two decades, noting that the S&P 500 has surged 419% since the year 2000, while European peers have lagged significantly behind.
This structural premium, Strategen argues, provides a foundation for continued upward momentum rather than signaling an imminent correction.
The bullish stance comes as US stock markets opened higher on Tuesday, marking a shift in sentiment after several days of declines.
The recent rebound reflects a combination of easing geopolitical tensions and continued strength in corporate earnings, which has helped stabilize investor confidence.
While the long-term outperformance of US equities is well-documented, the immediate catalyst for the latest rally appears to be a rotation back into risk assets following a period of volatility.