US stock momentum to accelerate as European markets lag further: deVere CEO
US stocks are primed to pull even further ahead of their European counterparts, driven by robust economic momentum, significant policy tailwinds, and shifting global investor sentiment, predicts the CEO of one of the world’s largest independent financial advisory and asset management organizations.
The prediction from Nigel Green of deVere Group comes as the disparity between US and European stock performance has widened significantly this year.
Wall Street’s indices are hitting new highs while Europe struggles under the weight of potential trade barriers, slowing growth, and a lack of meaningful stimulus.
According to deVere Group, these conditions are expected to persist, offering unique opportunities for investors ready to act decisively.
“US markets are riding a wave of optimism, with hopes tax incentives, deregulation, and targeted economic policies fuel corporate growth and earnings.
“Meanwhile, European equities are grappling with compounded pressures, including weaker exports, tariff fears, and sluggish fiscal response,” he says.
Following President Trump’s re-election, his administration has reaffirmed a commitment to economic protectionism, including aggressive tariffs on key trading partners.
These measures are expected to disproportionately impact European exporters, particularly in manufacturing and luxury goods, creating further headwinds for the region’s stock markets.
In contrast, the US outlook has benefited from Trump’s expansionary domestic policies, which include corporate tax cuts and significant deregulation. These measures have propelled the S&P 500 to record levels, buoyed by strong earnings from high-growth sectors such as technology and healthcare.
“As European economies brace for potential trade conflicts, the divergence in market performance is likely to intensify,” warns the deVere Group CEO.
While the immediate risks to European stocks are evident, deVere emphasizes that global diversification remains key for long-term investors seeking to mitigate risks and capitalise on opportunities.
“Markets are never static, and volatility often creates the most attractive opportunities,” notes Nigel Green. “Investors should focus on expanding their exposure to regions and sectors poised for growth—especially in the US, where the momentum is unmistakable.
“High-growth industries such as tech, biotech, and consumer goods are expected to remain dominant drivers of returns in the US. In contrast, Europe’s ageing industrial base and energy-intensive sectors may struggle to regain footing. Diversifying portfolios to include more US equities and sectors aligned with transformative growth trends is essential.
“At the same time, emerging markets and Asia-Pacific economies offer compelling opportunities as they adapt to shifting supply chains and rising consumption trends, making them essential components of a well-diversified portfolio.”
The anticipated disparity in central bank policies also presents investment openings.
“The European Central Bank is widely expected to slash rates aggressively in response to declining growth, which could weaken the euro further. Meanwhile, the Federal Reserve is expected to ease rates at a slower pace, maintaining relative strength in the dollar.”
Currency movements alone are likely to create significant opportunities for dollar-denominated assets, which will be buoyed by their global appeal as a safe haven.
As trade policies and monetary decisions evolve rapidly, investors face a critical moment. The shifting landscape of global trade and economic policy demands immediate and proactive portfolio adjustments.
“Staying on the sidelines is not an option in markets like these,” the deVere CEO concludes.
“While European markets present important selective opportunities, the US remains the clear leader for both growth and resilience, while Asia-Pacific markets are benefiting from regional trade agreements, tech innovation, and demographic shifts.
“These times are giving us a masterclass in diversification strategies.”