U.S. stocks aren't the only ones soaring. European stocks have surged to five-year highs in recent weeks.

But beware of dangers lurking under the surface, as European economies are limping rather than roaring, The Wall Street Journal reports.

Still, investors like what they see now. U.S.-based funds that invest in Europe have enjoyed an inflow of $2.05 billion so far this year, with all of that net gain coming during the past three months, according to Lipper.

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Each of the last five years saw an outflow.

But there are plenty of reasons to stay off the bandwagon. Eurozone GDP growth totaled only 0.3 percent in the second quarter. And the International Monetary Fund predicts an expansion of just 1 percent next year.

Meanwhile, government debt is expected to reach 96 percent of GDP for the eurozone next year, according to The Journal.

"The fact that Italy and Spain are returning to growth is a positive, but we are concerned that the level of debt continues to be revised higher, and the peak in the debt cycle continues to be pushed back," Martin Harvey, a fund manager at Threadneedle Investments, tells the paper.

To be sure, the European Central Bank (ECB)'s interest rate reduction Thursday enhanced market bullishness.

"The ECB rate cut is good news, not only because of easier money but also because it should push the euro lower,” Pierre Mouton, a portfolio manager at Notz, Stucki in Geneva, tells Bloomberg.

"I’m very happy with the performance of European equities so far this year, and we still prefer it for valuation reasons."

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