Investing
Retail Traders Bet Big on Europe and See Meme Stock-Like Returns
US investors have been looking abroad for gains after a long stretch when domestic stocks were dominant.
Major stock indexes in Europe are finally rivaling the S&P 500 after decades of underperformance.
Photographer: Nathan Laine/BloombergThe recent return of meme-stock froth to markets saw risk-loving retail traders riding the fleeting spikes in shares of Krispy Kreme and Kohl’s as they hunt for gains that can beat the S&P 500.
But for much of this year, a cohort of investors has been betting on a new, potentially more enduring trend: that European stocks will finally outperform their American counterparts, driven by a fundamental case for shifting some investment dollars elsewhere.