European stocks have outperformed the S&P 500 by 20 percentage points since mid-November, marking the largest outperformance since the 2000 Dot-Com Bubble. The Euro Stoxx 50 index has risen by 15%, while the S&P 500 has declined by 5%. In a notable trend, investors have poured approximately $4 billion into European equities over the past four weeks, the highest inflow in a decade. The Euro Stoxx 50 index is up 13% year-to-date, significantly outperforming the S&P 500, which has seen a decline of 3.5%. Amidst this, Indian defense stocks have risen for five consecutive sessions, becoming the best-performing sector this month, driven by expectations of increased military spending in the Eurozone. Analysts suggest that Europe is entering an era of rearmament, with five defense stocks surging in response to these trends. In contrast, U.S. stock markets have witnessed substantial foreign selling, with over $5 billion in net outflows last week, the third-largest withdrawal in history, highlighting a shift in investor sentiment towards European markets.