Valuation wise, Tom explained to me that the S&P 500 now trades at the top end of historical valuations at 18.25 times 2017 earnings per share (EPS), and 17.75 times 2018 EPS. Conversely, the MSCI Europe Index is trading at 15.1 times 2017 earnings, and 13.8 times 2018 earnings. That’s a 17% and 22% discount to the U.S. index valuations, respectively.

As for central bank support, the European Central Bank still is using quantitative easing (QE), and it still plans to buy some 60 billion euros worth of bonds through December of this year. That will continue to support the EU economy, and help earnings and inflation move higher, which is European-equity positive.