Closely monitor the trends of technology stocks, approaching levels that may trigger a departure from USA stocks - Bank of America Corp.

November 23, 2024, 0:49 JST (excerpt)
A strong catalyst to prompt the dissipation of the "US exceptionalism" trade
Expecting high yields to stall, with a stock recommendation for China, European index, etc.
Bank of America (BoA) pointed out that the Nasdaq 100 Index, which has a high weighting of high-tech stocks and is close to levels that could trigger a rollback in preference for US stocks, as compared to the S&P 500 Index.
The relative price of the Nasdaq 100 Index compared to the S&P 500 Index has been trending above the high set in 2000, becoming a factor that "investors continue to go long on US high-tech stocks and the dollar," as noted by Bank of America's team led by Michael Hartnett. If this level is breached, it would serve as a strong catalyst for resolving the "US exceptionalism" trade, as stated in the report.