Valuation of European stocks.

PE ratio of the index Dow Jones STOXX 600 is at 22.3, which is 55 percent more than is PE ratio of the index S&P 500. This difference is the largest since 2003. Macroeconomic situation, however, is more favorable for US shares. It is highly expected that recessions in Europe will go on at least one year. In the U.S. There may be recovery already at the end of this year. International Monetary Fund expects that losses from bad loans can grow twice as fast as in the United States.