Wall Street Touts Europe as Winner in Stock Rally’s Next Leg
- Goldman’s Bell sees European stocks beating US over 12 months
- Broader rally will benefit economy-linked equities, Citi says
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Wall Street strategists are recommending European equities over their US peers as an improving economic outlook and near-record discounts drive gains beyond the technology industry.
Market forecasters at Goldman Sachs Group Inc. and Citigroup Inc. say companies that are sensitive to the economy’s ebb and flow — so-called cyclical stocks — will lead the next leg. That bodes well for Europe, where cyclicals dominate benchmark indexes more than in the US, and data point to economic green shoots.