European stocks have significantly outperformed U.S. stocks in recent months, with the Stoxx Europe 600 index rising by 12 percentage points compared to the S&P 500 in dollar terms over the past 20 trading days. This trend is notably rare, having occurred only a handful of times in the last 25 years, primarily during the 2008-09 financial crisis. In the broader context, the S&P 500 has gained 2.7% over the past six months, while major international markets such as the Hang Seng (+39.0%) and DAX (+23.5%) have shown much stronger performance. Analysts suggest that European stocks are currently viewed as a favorable investment, as evidenced by increased valuations in sectors such as defense, according to Morgan Stanley.