According to a recent survey by Bank of America, international stocks are becoming the primary choice for investors over the next five years as confidence in American assets diminishes.
Shift in Investor Preferences
The survey revealed that less than 25% of asset managers believe US stocks will lead in returns. Instead, investors are increasingly directing funds toward emerging markets and Eurozone equities. Bank of America strategist Michael Hartnett stated, 'Less than one quarter think US assets will continue to dominate ranked returns.'
Decline in Confidence in the Dollar
Investor confidence in the US dollar has plummeted to its lowest levels in over 20 years, primarily due to President Donald Trump's aggressive trade stance. This has caused uncertainties regarding the dollar's status as a safe-haven asset, prompting investors to move capital into gold, deemed highly attractive by 41% of those surveyed.
Expectations for Stocks and Volatility
Simultaneously, global equities, particularly in developing markets, are witnessing increased capital influx. Stocks in these regions are currently seen as more affordable compared to US stocks, making them more appealing to investors. Meanwhile, companies like Etsy retain analyst interest, with recommendations to buy shares despite potential risks from China's trade policies.
The decreasing interest in American assets and the rising popularity of international markets highlight a shifting investment landscape, where the focus is moving towards more advantageous and secure investments.
