Investors are realizing they are overexposed to US stocks, leading to confusion about how to rebalance their portfolios. Approximately 70% of developed market indices are reliant on US stocks, raising concerns due to current political and economic instability.
Key institutions like Société Générale and Deutsche Bank are suggesting a move towards European and Asian markets. They emphasize a significant investment shift, known as the “Great Rotation,” indicating a major change in investor sentiment regarding US assets.
There is no consensus on the appropriate level of exposure to US stocks. Many investors are questioning how best to rebalance their portfolios, with suggestions indicating US allocation should drop significantly if based on global GDP contribution.
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