Europe, China woes add to bullish case for US stocks

(FILES) A "We Are Hiring" sign is posted in front of a restaurant in Los Angeles, California, on August 17, 2022. Job growth in the United States was lower than anticipated in July, according to government data released on August 4, 2023, hovering at the slowest pace since late 2020 in encouraging news for policymakers. The figures suggest that the labor market in the world's biggest economy is cooling although wage gains remain strong, adding to signs that officials can lower inflation without triggering a major recession. (Photo by Frederic J. BROWN / AFP)

London: Europe’s stagflation crisis and a property downturn in China are flashing a familiar message: for equity investors, there is no real alternative to the US stock market.

With four months left of 2023, returns on the S&P 500 boast about an eight percentage-point lead over the Stoxx Europe 600. The index is on course for its eighth year of outperformance in the past decade, as the artificial intelligence (AI) buzz overshadows economic recession fears and pricey valuations.