JPMorgan Chase and Goldman Sachs Flip Bullish on One Under-the-Radar Asset Class: Report

Analysts at two of America’s biggest banks are eyeing up one overlooked asset class for outsized gains into year-end.

Market strategists at JPMorgan Chase and Goldman Sachs say that the STOXX Europe 600 index, which tracks large, mid and small capitalization companies in European equities, is likely to print rallies before the end of 2025, Bloomberg reports .

A team at Goldman, led by analyst Sharon Bell, expects the index to rise 5% in the coming year. Bell points to investors’ “growing desire to diversify away from US exposure, both due to dollar weakness and concentrated positions in tech.”

JPMorgan Chase strategist Mislav Matejka says the index has completed a “healthy” consolidation phase after sentiment turned overly bullish earlier in the year. Given that China’s stock market is recovering, and the Chinese economy is an important market for European industries like miners, automakers and luxury goods, Matejka says  “the time to buy is approaching” for STOXX Europe 600.

In a recent note to investors, JPMorgan global investment strategist Carter Griffin said that US policies – such as new tariffs and government spending bills – have caused the stock market index to lag behind European and Japanese markets.

“Policy evolution (such as new tariff announcements, a substantial US government tax and spending bill, and infrastructure and defense investment in Europe) has played a role in the S&P 500’s underperformance (+9% year-to-date) versus other major developed world markets like Europe (+21%) and Japan (+15%) in U.S. dollar terms.”

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