As of mid-February 2025, European stocks have shown notable outperformance compared to U.S. stocks, marking a shift in the long-standing trend where U.S. equities have dominated. Year-to-date, the Europe ETF ($VGK) has increased by 11.0%, while the U.S. S&P 500 ETF ($SPY) has risen by 4.4%. This year has seen international stocks gain 7.2%, in contrast to a 4.0% gain for the S&P 500. The MSCI All World ex-US index has risen by 7%, with MSCI Europe leading at a 10% increase. Analysts suggest that this performance may be a catch-up trade following a challenging Q4 2024, where non-U.S. stocks fell by 9% and European stocks dropped by 11%. Additionally, a group of European bank stocks, referred to as the 'Magnificent 47', has delivered nearly 100% returns since 2022, outperforming the well-known 'Magnificent 7' of U.S. tech stocks.