Europe may not be finished with its debt crisis, but the U.S. fiscal cliff drama has investors looking eastward, says Jim O’Neill, chairman of Goldman Sachs Asset Management.

“More and more longer-term investors are being influenced by [the fiscal cliff impasse] and are starting to think Europe has dealt with some of its long-term issues, even though the economies are weak.” O’Neill tells CNBC.

“I detect the first signs of people shifting more toward Europe from the U.S.”

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

The Stoxx Europe 600 Index has risen for six straight months, its longest winning streak since 2006. The gains have been sparked largely by quantitative easing from the European Central Bank and the Federal Reserve.

The fiscal cliff problem stems from the inability of the White House and Congress to agree on how to cut the budget deficit, of course. The United States could learn from Europe on that score, O’Neill says.

“Many European countries have been dealing with coalition governments for some time.”

The Stoxx Europe 600 has jumped 18 percent from its June 4 low.

“There’s been a strong reversal in sentiment,” Marc Renaud, CEO of money manager Mandarine Gestion, tells Reuters.

“We’re now seeing inflows into equities, albeit still modest, and the volatility has tumbled to levels not seen since the start of the financial crisis.”

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.