Central Banks

US vs Europe: Where should you invest?

The best bet in 2016: US vs. Europe

Investors are eyeing the U.S. and the European markets closely as the European Central Bank and the Federal Reserve may implement diverging monetary policies.

With the ECB expected to boost its quantitative easing program, and the Fed to raise interest rates, experts consider where investors should put their money.

"Within equities, you're going to want to continue to lean into the U.S. because it's got a better growth trajectory," Sameer Samana, global quantitative strategist with Wells Fargo told CNBC's "Power Lunch," on Wednesday.

Samana points to lower unemployment rates, better credit availability and less political risks as favorable elements for U.S. investors.

Janet Yellen
Yellen: Data could still sway December rate decision
Janet Yellen, chair of the U.S. Federal Reserve, left, speaks with Mario Draghi, president of the European Central Bank during the Jackson Hole economic symposium on Aug. 22, 2014.
Coming soon to central banks: 'The great monetary divergence'

Federal Reserve Chair Janet Yellen spoke before the Economic Club of Washington on Wednesday regarding the Fed's economic outlook and monetary policies.

"On balance, economic and financial information received since our October meeting has been consistent with our expectations of continued improvement in the labor market," Yellen said.

Yellen added that the data received between now and the December Federal Open Market Committee could still sway the Fed's interest rates decision.

"We like Europe in terms of total returns more than the U.S. over the next year, but let me emphasize this: The euro and the pound will still hold a lot of U.S. equities because it's the best way to hedge against the U.S. dollar," David Stubbs, global macro strategist at J.P. Morgan, said in a "Power Lunch" interview, on Wednesday.

J.P. Morgan believes that Europe is going to grow an excessive 1 percent, which translates to 10 percent earnings growth in the euro zone.

In terms of credit conditions, Stubbs believes that the U.S. credit cycle is on the downside.

On Thursday, the focus shifts to Mario Draghi, who is expected to make public the monetary policy decision of the ECB.