According to The Kobeissi Letter, European stocks have outperformed the S&P 500 by 20 percentage points since mid-November, marking the largest disparity since the 2000 Dot-Com Bubble. Specifically, the EuroStoxx 50 index increased by 15%, while the S&P 500 decreased by 5%. Despite this significant performance gap, the valuation ratio between the two indices remains near its historical low, indicating potential undervaluation of European equities relative to U.S. stocks. This could suggest a potential trading opportunity for investors considering geographical diversification in their portfolios, with a focus on European markets. This performance shift may influence asset allocation strategies, particularly for traders seeking to capitalize on regional market strengths. (Source: The Kobeissi Letter)