European stocks have gained traction as investors increasingly favor them over U.S. equities, driven by a notable divergence in performance. Year-to-date, European markets have outperformed their U.S. counterparts, with the MSCI Europe ETF ($VGK) rising by 12.4%, while the U.S. Total Stock Market ETF ($VTI) has declined by 5.6%. Analysts indicate that this trend is not merely a reaction to the recent underperformance of the U.S.'s 'Magnificent 7' tech stocks, but rather a reflection of Europe's consistent outperformance over the years. Additionally, international stocks have surpassed U.S. stocks daily throughout March, with the MSCI All Country World ex-U.S. ETF ($VEU) reaching nine-month highs against $VTI. Charts from Morgan Stanley highlight Europe’s earnings momentum as a key factor contributing to this shift in investor sentiment.