With Eu r opean stocks off to a strong start this year, investors across the pond may want to get some exposure to that market and capitalize on the trend.
.STOXX YTD mountain Strong start to European stocks Despite this outperformance, the European index is also far cheaper than the S & P 500, trading at a forward multiple of 13, while the U.S. benchmark is trading at a forward price-to-earnings ratio of about 18.
Tech stocks make up a smaller portion of the European stock index – less than 8% in the Stoxx 600 compared to roughly 30% in the S & P 500.
Separately, Goldman Sachs' Peytavin identified autos, real estate, insurance and construction and materials as among the worst sectors for European stock pickers.
"They are macro sectors, stocks, all moving together driven by the macro rather than stock idiosyncrasies, and offer a narrow performance spread," Peytavin wrote.