Market Views: Will European equities outperform the US?

As stocks in the US get increasingly expensive after a 15-month rally, investors have turned their attention to European stocks for their attractive valuations and earnings growth potential. Vaccine optimism and fiscal stimulus have given the US economy an earlier boost than Europe. The MSCI USA Index is now 30% more expensive than the MSCI Europe Index based on forward earnings, the biggest premium in more than 20 years. In addition, 2022 earnings per share growth for companies…