"Hedge Funds' European Stock Rally Bet"

Hedge funds and mutual funds are increasingly betting on Europe to lead the next phase of the global equity rally, as the US market becomes more expensive and potentially overvalued. Investors are drawn to Europe's relatively cheaper valuations, potential for economic growth, and opportunities in cyclical sectors. Despite the US market's strong earnings growth outlook, Europe's outperformance against US stocks is gaining traction, with hedge funds' exposure to European stocks reaching record levels.