European Equities Gain Favor Amidst U.S. Market Lag European equities have captured investor interest in early 2025, with WisdomTree funds focusing on European markets outperforming U.S. benchmarks. Valuation gaps persist, but European stocks, priced at 14 times forward earnings versus the S&P 500's 22, have delivered returns exceeding 10% in some cases, signaling a potential trend shift.1