Billions of dollars have been invested into the European stocks. In fact, it has become the hottest trade in the world since last few weeks.

For last so many years, the European markets were under the impact of an extended recession that was brought about by the euro crisis. But recently, an astonishing improvement has been noticed in its economic data across the region and due to this there seems to be a plunge into European markets.

By early August, it was mentioned by strategists like Oppenheimer's John Stoltzfus: "Stateside investors are beginning to consider investments in Europe and elsewhere ex-U. S. for diversification once again as multiples expand stateside and hints that conditions are beginning to improve outside of the U. S., particularly in the developed European markets, emanate".

He mentioned that once again, investing in Europe might prove to be equally beneficial as that of investing in American funds. And by mid-August, investors were found shifting their investment money from U. S.-oriented equity funds into European funds.

Soon after, the Societe Generale global asset allocation team announced European equities to enjoy net inflows of $100bn soon. With this, outflows were seen from the U. S. and other equity funds around the globe; only Europe seems to enjoy weekly ins and outs.