For the past 6 years, the United States market has been running with the bulls. However, the year 2015 seems to be bringing about a reversal. Throughout the year, we've seen declines in United States stocks. However, when investors pull money out of one area, it tends to go to another; and in this particular place, it seems to be going to the DAX. As a matter of fact, throughout the year, the Dow has remained relatively stagnant while the DAX has gained 17%. Today, we'll talk about why investors are running away from US stocks and looking to European markets for growth; as well as how long this trend is likely to last. So, let's get right to it…

Why Investors Are Ditching The Dow For The DAX

There are several reasons that European stocks are looking more attractive to investors than United States stocks…

Exchange Rates – First and foremost, we've talked quite a bit about the strength of the US dollar as of late and how the strong dollar has been causing pain for several US stocks. The reality is that the strong US dollar means that products coming from the nation are more expensive elsewhere. This has caused quite a bit of pain with regard to exports in the United States. However, the European economy is heavily influenced by exports; and they aren't experiencing the strength in currency that the US is dealing with. As a matter of fact, throughout the year, the Euro has lost ground against the US dollar. As a result, European products are becoming less expensive in other nations. With that in mind, exports in the Eurozone are doing great!

Economic Policy – Another major factor at play here is economic policy. The reality is that a big driver for the growth we've seen in the United States market is economic policy. Low interest rates coupled with quantitative easing gave investors a reason to expect growth; which turned into more of a self fulfilling prophecy. Investors expect it, therefore they make it happen! However, quantitative easing ended in 2014 and the big discussion with regard to US stocks throughout the year has been the fact that the Federal Reserve plans to increase interest rates. Ultimately, this has put a damper on growth. However, in Europe, we're seeing the exact opposite. The reality is that the European economy has struggled. As a result, the European Central Bank enacted stimulus of its own; ultimately giving investors a reason to drive growth in the European market.