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JPMorgan Says Sell U.S. Stocks, Buy Europe on Valuation

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JPMorgan Chase & Co. told investors to dump U.S. equities in favor of their European counterparts.

The brokerage cut its rating on U.S. stocks to underweight, similar to a sell recommendation, from the equivalent of buy, while reversing the call for euro-area equities. As enthusiasm for European stocks faded since the beginning of 2014, when bulls united in favoring the region, the lag versus the U.S. has now made them too cheap to ignore, according to JPMorgan strategists led by Mislav Matejka.