Investors Are Going All In on the Global Divergence Trade
- Positioning is most overweight U.S. stocks since 2015
- Allocation to EM continues to drop in ‘massive reversal’
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America First is captivating investors like never before, at the expense of other world markets.
Money managers with $724 billion have the most favorable outlook on U.S. profits on record, according to Bank of America Merrill Lynch’s latest investor survey. And their positioning matches that optimism: allocation to American stocks is 21 percent overweight, the highest since January 2015. That compares to an 11 percent overweight for eurozone equities, which is an 18-month low.