From Yahoo Finance: 2025-06-17 20:50:00

Global investors predict international stocks will outperform US stocks over the next five years, with 54% believing international stocks will be the top performer. The largest tail risk is a global recession triggered by tariffs, with 47% of fund managers seeing it as a significant threat to markets.

Investor sentiment in US markets is pessimistic due to Trump’s trade war and tariff concerns impacting the global economy. Only 23% of investors believe US stocks will be the best-performing asset, with a majority eyeing international stocks for growth. A trade war-induced global recession is seen as the largest tail risk.

Investors also fear the Fed hiking interest rates to combat inflation or a credit event due to a rise in bond yields. Despite concerns, sentiment has improved in June, with investor growth expectations increasing. The sentiment gauge reached its highest level in three months, signaling a more positive outlook.

66% of investors believe the global economy will avoid a recession and achieve a soft landing in the next 12 months, a significant increase from previous surveys. Overall, international stocks are favored for future performance, reflecting a shift in investor sentiment towards global markets.

Read more: Most investors see international stocks beating US peers over the next 5 years, BofA survey shows