"Introducing Europe's 'Granolas': The New Contender to the Magnificent 7"

Goldman Sachs has identified a group of European stocks, dubbed "Granolas," as promising investments that have kept pace with the growth of leading U.S. companies. Despite Europe's flatlining economy, the Granolas, consisting of pharmaceutical, tech, and retail stocks, have delivered substantial shareholder returns and accounted for 60% of gains in the Europe-wide STOXX 600 index last year. These stocks are seen as resilient in times of economic uncertainty and are popular among passive investment funds. While risks exist, including exposure to U.S. tariffs and China's consumer sentiment, the Granolas offer a healthier alternative to their U.S. counterparts and are viewed favorably by major banks like Morgan Stanley.