European stocks in my portfolio — why I prefer the USA
In the long term I don’t trust most European stocks due to weak economic growth, strict regulation, and lower upside compared with the USA. Therefore, in my dollar portfolio I focus mainly on American stocks, where I see better returns and more opportunities to benefit from innovation.
Today, after the drop (around -1.8% to 19.83 EUR) my stop-loss on $NESTE.HE (Neste Oyj) was executed, which is in line with my risk strategy. I also hold $VOW3.DE (Volkswagen) and $BAYN.DE (Bayer), but I plan to sell them once they reach my target prices — for VOW3 around 115 EUR (currently 101 EUR) and BAYN around 53 EUR (currently 41 EUR), as I expect some upside thanks to relatively good results and riding the positive sentiment in pharma stocks. In the long run, however, I think it’s a dead end.
Of European stocks I see long-term holding potential only in $ADYEN.AS (payment services with revenue growth above 20% and EBITDA >50%) and $ASML (leader in EUV for AI chips, with target prices above 1400 EUR and an absolutely unique position among key suppliers to chipmakers).
What do you think about European stocks vs. the USA? Do you hold most of them long-term?
If Trump attacks Greenland, assets owned by Europeans in the US could theoretically be frozen. Similar to what’s happening now with assets in Russia. That would be pretty brutal, wouldn't it?
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I think each has its own advantages. I personally mostly own American companies, but I see the regulation you mentioned as both a major drawback and an advantage. I agree that regulation in the EU can negatively affect a company's performance; at the same time, you won't see market manipulation by a president in the EU.