According to Bank of America's (BofA) latest survey of fund managers, foreign stocks will outperform US equities over the next five years. This reaffirms the widespread belief among investors that the US market's dominance is coming to an end.
About 54% of asset managers expect global stocks to be the leading asset class during the said period, while 23% prefer US equities. Only 13% believe gold will offer the highest returns, and 5% favor bonds.
The idea of selling US assets is gaining popularity among market participants as President Donald Trump's policies unfold, Bloomberg reports. The US president is raising import tariffs and promoting legislation that economists estimate could increase the federal budget deficit by $2.4 trillion over the next decade.
A BofA survey found investors have recently shifted their attention to eurozone, emerging markets, and banking sector equities. US stocks, the dollar, and energy commodities are not among their priorities.