With US stock indexes at all-time highs and AI-driven valuations stretched, global diversification offers compelling opportunities. Japan emerges as a particularly attractive alternative market for value-conscious investors.
This week brings a packed earnings calendar with major players like Netflix and Tesla reporting quarterly results. Analysts suggest these reports could determine whether the strong start to earnings season continues. Investors are watching for impacts from tariffs, content performance, and regulatory developments.
The third-quarter earnings season has reportedly begun with strength, with investors looking to this week’s reports to maintain positive momentum. According to the analysis, more than 80 S&P 500 companies are scheduled to release results, including major names in streaming and automotive sectors. This follows strong quarterly figures from banking giants earlier in the season.
Deutsche Bank has shifted its stance on European equities from neutral to positive, citing an end to 15 years of underperformance versus the U.S. The bank highlights cheaper valuations, reduced market concentration, and robust fiscal policies as key drivers. This strategic upgrade signals a potential inflection point in global equity markets.
In a significant strategic pivot, Deutsche Bank has upgraded its outlook on European equities from neutral to positive relative to the United States, marking what analysts describe as the end of a 15-year period of underperformance. This shift comes amid record highs for U.S. indices like the S&P 500 Index and growing concerns about inflated valuations and concentration risks stateside. According to the bank’s October research note, European markets offer “cheaper valuations, higher diversification and a strong fiscal impulse,” positioning them for potential outperformance through 2026.
