The US stock market has outperformed its international counterparts significantly in recent years, with US stocks returning 25% in 2024 compared to just 5% for international stocks, marking the largest gap since 1997. This trend has led to a widening disparity in valuation multiples between the US and European markets. Since the end of 2019, the US economy has grown by 12%, while the EU has seen only a 5% increase. Notably, seven US stocks are now valued higher than the combined market capitalization of major European stock markets. Despite this, January 2025 showed some bullish price action in global capital markets, with European equities and US Health Care outperforming, and cyclical sectors such as Financials and Industrials also performing well. However, European markets, particularly the FTSE Developed Europe Index, have started the year strongly, indicating a potential shift in market dynamics.