Recent analyses indicate that European stock markets have outperformed U.S. equities year-to-date, a trend supported by various financial institutions. According to Morgan Stanley, European value stocks have outperformed U.S. growth stocks by 37% since Christmas Eve, while Goldman Sachs noted that investor positions in U.S. equities have sharply declined, although they are not yet at depressed levels. A gap remains between Europe and U.S. PEG ratios, despite recent convergence. The divergence in performance is attributed to stronger earnings growth and returns to shareholders in Europe. Additionally, the U.S. has seen rising policy uncertainty, contrasting with declining indicators in Europe. Systematic selling by Commodity Trading Advisors (CTAs) has also been observed, with CTAs now short $18.6 billion of U.S. equities after selling $33 billion over the past week, raising concerns about further downside pressure in the U.S. market. The aerospace and defense sectors in the Eurozone have notably benefited from the ongoing Russia-Ukraine conflict, outperforming U.S. growth stocks by 100% on a cumulative basis since fall 2022.