Recently, the latest fund manager survey (FMS) from Bank of America (BofA) shows a decline in allocation to USA stocks.The largest drop in history.This has caused many investors to start worrying about the future of the market. As global economic growth slows, the Federal Reserve (Fed) maintains a high-interest-rate policy, and geopolitical risks intensify, institutional capital is withdrawing from the USA market and shifting towards Europe and other safe-haven assets. What does this wave of capital trend changes mean for investors focused on USA stocks? How should investment strategies be adjusted? This article will analyze from the perspectives ofmarket data, trend changesto help investors seize opportunities.
The allocation of US Stocks has reached a record decline; why are institutions withdrawing their funds?
According to BofA's data,Fund managers have reduced their allocation to US Stocks by the largest margin in the history of the survey.This happened in just one month,with institutional investors' allocation to US Stocks dropping sharply from a net 4% to negative 22%.This means that confidence in the US economy is weakening, and investors are shifting their funds to other markets and asset classes.
The key reasons behind this wave of withdrawal include:
1. Economic slowdown in the USA.The latest data shows that global economic growth expectations have significantly declined, with 44% of Fund managers anticipating further deterioration in the economy.
2. The Federal Reserve's continuous high interest rates.As the pace of inflation cooling is slower than expected, the market's expectations for interest rate cuts are continually postponed, resulting in a lack of strong catalysts for US Stocks.
3. Technology Stocks are overvalued.Fund Managers believe...

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