Investors aren't just buying US stocks anymore: Morning Brief
Published On Feb 19, 2025, 6:00 AM
Investors' confidence in U.S. stock market exceptionalism is decreasing as a growing share of fund managers believe that global stocks will outperform U.S. equities in 2025. Recent inflows into European equities have surged, led by optimism about rate cuts from the European Central Bank, while U.S. growth expectations are declining. This shift suggests a reevaluation of investment strategies, with foreign markets becoming increasingly appealing compared to U.S. stocks, which are seen as overvalued after a long period of strong performance.
Stock Forecasts
IEFA
Positive
With growing interest in non-U.S. equities and signs of stagnation in U.S. economic performance, investors may benefit from reallocating to international stocks, particularly in Europe where growth forecasts are improving.
XLE
Neutral
As the S&P 500 struggles amid stagnant growth expectations, investors in U.S. equities might face headwinds. A shift towards undervalued sectors like Materials and Energy could offer opportunities, albeit within a potentially declining overall market.
Related News
Right-Wing Media Praises U.S.-Russia Talks as ‘Breath of Fresh Air’
Feb 18, 2025, 8:35 PM
Many of President Trump’s media allies were quick to celebrate this week’s negotiations, a contrast to the deep unease expressed by the foreign policy establishment.
Energy bills forecast to rise by £85 a year
Feb 18, 2025, 7:40 AM
Cornwall Insight predicts that the energy regulator will hike gas and electricity prices by 5%.
Trump announces energy deal with India after Modi talks
Feb 13, 2025, 6:23 PM
The US president says India will be buying "a lot of our oil and gas" after meeting India's PM.