LONDON – Investor allocations to U.S. equities have hit a record high this month, at the expense of European stocks, commodities, and cash, according to a December survey from BofA Global Research.
According to a survey of 171 participants with $420 billion of assets under management, this shift is on the back of U.S. growth optimism, bets that Donald Trump’s second term as president will bring in tax cuts and deregulation, and looming rate cuts from the Federal Reserve.
Allocation to cash is at its lowest since at least April 2001, to commodities, at the lowest since June 2017 and investors have the biggest underweight in European stocks since October 2022.
That means investors are the most overweight U.S. equities relative to the euro zone since June 2012, the time of the sovereign debt crisis in the single-currency bloc.
