Sharon Bell

European banks are attractive because they benefit from higher interest rates and a steeper yield curve, and as long as there is no recession, they will perform well.

European tech stocks are relatively cheaper than their U.S. peers and still have significant growth potential, making them a good opportunity.

European companies in industrials, utilities, energy, and telecoms are needed for AI infrastructure buildout and offer better value than expensive US tech stocks, making them attractive investments.

European technology companies are direct beneficiaries of the AI transformation and have attractive growth prospects. Despite fewer pure-play AI names than the US, European tech offers exposure to the AI hardware and software ecosystem with less concentration risk.

Bell notes US markets are expensive and concentrated. Europe offers exposure to "Old Economy" sectors (Industrials, Materials) and trades at lower valuations (UK at 13.5x PE). As investors seek diversification away from the US Dollar and US Tech concentration, flows will move to cheaper, cyclical markets like Europe and the UK. LONG Europe/UK as a valuation and currency diversification play. European economic growth remains stagnant compared to the US.