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Time of India
19-06-2025
- Business
- Time of India
Bank of America Survey predicts global stocks to outperform US equities over next five years
But that's started to change. So far in 2025, the S&P 500 is on track to underperform global stocks by the most since 2009. Global stocks are expected to outperform US equities in the next five years. A Bank of America survey reveals that most fund managers predict international stocks will be the top asset class. This forecast signals a potential shift from the long-standing dominance of US stocks. The S&P 500 is already underperforming global stocks this year, marking a significant change. Tired of too many ads? Remove Ads New York: Global stocks will beat US equities over the next five years, according to Bank of America Corp.'s latest fund manager survey, adding evidence that investors increasingly see America's market dominance as coming to an 54% of asset managers expect international stocks to be the top asset class, while 23% picked US stocks, according to the survey. Only 13% said gold will deliver top returns, and 5% are betting on the first time that Bank of America's survey asked investors to predict which asset class will perform best over a five-year horizon. The responses reflect the popularity of the "Sell America" trade that's taken hold as President Donald Trump hikes tariffs and pushes legislation that would add an estimated $2.4 trillion to the budget deficit over a the fund managers are right in their prediction, it would be a reversal in what's been the most reliable money-making trade for years. US stocks have topped international shares in 13 of the past 15 calendar years, according to data compiled by that's started to change. So far in 2025, the S&P 500 is on track to underperform global stocks by the most since 2009.
Economic Times
18-06-2025
- Business
- Economic Times
Asian shares slip as Middle East unrest deepens
Global stocks will beat US equities over the next five years, according to Bank of America Corp.'s latest fund manager survey, supporting the view that investors increasingly see America's market dominance as coming to an end. Oil prices are rising. Asian stocks are mostly down following Wall Street's losses. Middle East tensions are escalating. There is concern about potential US involvement. Donald Trump has commented on Iran. Investors are watching economic data. The Federal Reserve is meeting. Some anticipate a pullback in US equities. Global stocks may outperform US stocks in the next five years. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Oil climbed and most stocks in Asia followed losses on Wall Street as concerns mounted that an escalation of tensions in the Middle East will trigger a more direct US involvement West Texas Intermediate crude rose as much as 1.1% in early trading Wednesday after settling at the highest in almost five months the previous day. US equity futures slipped, as did Australia's benchmark index and Hong Kong futures. The S&P 500 fell 0.8% Tuesday as weaker-than-forecast economic data added to the US equity decline and boosted bonds before a Federal Reserve monetary-policy index of the dollar climbed the most in a month. Treasuries were supported by the geopolitical risks and also by tepid reports on retail sales, housing and industrial output that added to bets the Fed will cut interest rates at least once more in Donald Trump met with his national security team to discuss the escalating Middle East conflict, according to people familiar with the matter, fueling fresh speculation that the US is on the verge of joining Israel's attack on posted a demand for Iran's 'UNCONDITIONAL SURRENDER' and warned of a possible strike against the country's leader, Ayatollah Ali Khamenei. 'We know exactly where the so-called 'Supreme Leader' is hiding. He is an easy target, but is safe there - We are not going to take him out (kill!), at least not for now,' Trump said on social media.'For now, markets will remain mostly on edge until they lower the temperature in the region,' said Kenny Polcari, chief market strategist at SlateStone also kept a close eye on economic data, with US retail sales down for a second month, suggesting anxiety over tariffs and their finances prompted consumers to pull back after an early-year spending rush. Industrial production dropped and confidence among homebuilders hit the lowest since December 2022.'Investors should still expect some volatility in economic data due to lingering effects of trade policy,' said Bret Kenwell at eToro. 'The economy and the consumer are holding up for now, but there are signs of vulnerability. That could present risks in the second half of the year — particularly if we see a further slowdown in jobs or spending.'With US central bank officials convening for a two-day meeting in Washington, traders continued to wager on just shy of two quarter-point rate cuts this year — with the first move fully priced in for October. The Fed is expected to keep rates on hold in June and July, but may telegraph its intentions via revised economic and rate forecasts on Wednesday.A fourth straight meeting without a cut may provoke another tirade from President Trump. But policymakers have been clear: Before they can make a move they need the White House to resolve the big question marks around tariffs, immigration and taxes. Israel's attacks on Iranian nuclear sites have also introduced another element of uncertainty for the global economy.'While there has been a strong buy-the-dip mentality with investors having been rewarded for fading negative news this year, we think it's best to pull back on risk,' said Andrew Tyler, head of global market intelligence at JPMorgan Chase & Co. 'Positioning indicates that irrespective of Israel-Iran, the market was setting up for a pullback,' he told clients this stocks will beat US equities over the next five years, according to Bank of America Corp.'s latest fund manager survey, supporting the view that investors increasingly see America's market dominance as coming to an 54% of asset managers expect international stocks to be the top asset class, while 23% picked US equities, according to the survey. Only 13% said gold will deliver top returns, and 5% are betting on bonds. It's the first time that Bank of America's survey asked investors to predict which asset class will perform best over a five-year horizon.
Yahoo
09-06-2025
- Business
- Yahoo
BofA Sees Saudis Embarking on Long But Shallow Oil-Price War
(Bloomberg) -- OPEC+'s oil-output hikes are part of a Saudi strategy that will see the kingdom embark on a long but shallow price war designed to recapture market share, Bank of America Corp.'s head of commodities research said. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World Trump Said He Fired the National Portrait Gallery Director. She's Still There. US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Senator Calls for Closing Troubled ICE Detention Facility in New Mexico The producer group, of which Saudi Arabia is the de-facto leader, announced a third output increase of more than 400,000 barrels a day last month, bigger than previously planned. The additions are reversing years of supply curbs that were aimed at keeping prices higher. 'It's not a price war that is going to be short and steep; rather it's going to be a price war that is long and shallow,' BofA's Francisco Blanch said in a Bloomberg Television interview. That reflects a desire to take market share from US shale, which is in relatively good health but faces higher costs of production, he said. The kingdom is also working to regain market share from fellow OPEC+ members, according to Blanch. 'They've done this price support already by themselves for three-plus years,' which has allowed competitors' output to rise, he said. 'They're done with that.' Blanch noted that the change in strategy is already producing results, with the latest US oil-drilling data from Baker Hughes Co. showing the lowest rig count in about four years. --With assistance from Jonathan Ferro and Lisa Abramowicz. The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again America Cast Itself as the World's Moral Leader. Not Anymore Is Elon Musk's Political Capital Spent? What Does Musk-Trump Split Mean for a 'Big, Beautiful Bill'? ©2025 Bloomberg L.P.
Yahoo
23-05-2025
- Business
- Yahoo
BofA's Hartnett Says Buy the Dip in Treasurys as Yields Top 5%
(Bloomberg) — Investors should buy the selloff in long-dated Treasuries as the government is likely to heed warnings from bond vigilantes to bring its debt under control, according to Bank of America Corp.'s (BAC) Michael Hartnett. NY Private School Pleads for Donors to Stay Open After Declaring Bankruptcy Can Frank Gehry's 'Grand LA' Make Downtown Feel Like a Neighborhood? Chicago's O'Hare Airport Seeks Up to $4.3 Billion of Muni Debt NYC's War on Trash Gets a Glam Squad NJ Transit Makes Deal With Engineers, Ending Three-Day Strike The 30-year Treasury note (^TYX) is at a 'great entry point' with the yield above 5%, the strategist wrote. Bond investors are 'incentivized to punish the unambiguously unsustainable path of debt and deficit,' he added. US bond yields have surged this week as President Donald Trump's tax cut plan has ignited concerns that it would add trillions of dollars in coming years to already bulging budget deficits, at a time when investor appetite is waning for US assets across the globe. Sentiment toward Treasuries has also taken a hit since Moody's Ratings stripped the US of its top credit grade late last week. The 30-year yield rose to as high as 5.15% on Thursday, just shy of a two-decade high. Long-dated bonds in Japan, Germany, Australia and the UK have also been under pressure, while US equities and the dollar have retreated. Hartnett has recommended bonds over equities this year. The strategist said in the note dated Thursday that Treasuries are now reflecting the drivers of a bear market, with 10-year annualized returns from long-term government bonds falling to a record low of -1.3% in January. —With assistance from Michael Msika. Why Apple Still Hasn't Cracked AI How Coach Handbags Became a Gen Z Status Symbol Inside the First Stargate AI Data Center Anthropic Is Trying to Win the AI Race Without Losing Its Soul Microsoft's CEO on How AI Will Remake Every Company, Including His ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
BofA's Hartnett Says EM Stocks Will Outperform Everything Else
(Bloomberg) -- Emerging-market stocks are 'the next bull market' as they benefit from a weaker dollar and an economic recovery in China, according to Bank of America Corp.'s Michael Hartnett. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NYC Commuters Brace for Chaos as NJ Transit Strike Looms Power-Hungry Data Centers Are Warming Homes in the Nordics The MSCI Emerging Markets Index excluding China is up 20% from April lows and is set to break out of a 20-year trading range. The benchmark is up about 7% this year as investors seek alternatives to US assets, while S&P 500 is barely changed. 'Nothing will work better than emerging-market stocks,' Hartnett wrote in a note. US equities fell out of favor amid President Donald Trump's attempts to shake up global trade earlier this year. They've since recovered most of their losses and there are signs that investors are returning. Fund managers added $20 billion to US stock funds in the past week, the first inflow to the region in more than a month, according to EPFR Global data cited in the BofA note. Hartnett said he expects US shares to sell off again if the yield on 30-year Treasuries climbs above 5%, from around 4.87%. Still, he said the current yield level 'holds for now.' --With assistance from Michael Msika. Cartoon Network's Last Gasp Microsoft's CEO on How AI Will Remake Every Company, Including His DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Why Obesity Drugs Are Getting Cheaper — and Also More Expensive ©2025 Bloomberg L.P.
