Barclays Strategist Recommends Looking Beyond U.S….
From Financial Modeling Prep: 2025-02-11 01:21:08
Concerns over U.S. equity market concentration prompt investors to look at foreign markets as gains rely heavily on a few tech giants. Barclays’ Alexander Altmann suggests shorting U.S. exceptionalism could be strategic in the short term, despite not being structurally bearish on U.S. stocks. Market narrative may have limited room to run.
U.S. equity market performance driven by AI-driven Big Tech stocks, “Magnificent 7” (Apple, Microsoft, Google, Amazon, Meta, Tesla, Nvidia). Concerns arise over flat performance in early 2025 due to competition from Chinese open-source AI model. Valuations stretched, questioning U.S. equities’ dominance sustainability.
European markets outperform U.S. counterparts, with strong returns in 2025. Factors include better-than-expected earnings, attractive valuations, and trade tensions mitigation. European equities offer near-term opportunities for investors seeking diversification. AI competition and trade risks pose macroeconomic challenges for U.S. and international markets.
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