Many believe that the US is in a better position than European countries like Italy, who is facing a debt crisis. The US can print money while the only way out for the European countries is austerity. While the US may be better off in the short run, that might not be the case in the long run.
Countries like Italy are confronting their deficit because there is no way for them to print money. Over here we are paying lip service to the deficit but the problem is only getting worse. The market is forcing European countries to be disciplined, making for a more sustainable situation.
Portfolio managers are massively underweight Europe because of the debt crisis. Its possible they will be correct in the short run but I believe that European equities are a better value in the long run.