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Bank of America: The global dominance of U.S. stocks is weakening, and it is recommended to go long on Chinese stocks
2025-02-07 12:32

Odaily News Bank of America strategists expect the U.S. stock market's lead to continue to fade after it stopped rising in early 2025. Strategists including Michael Hartnett noted that stock markets such as Brazil, Germany, Britain, China and Canada have all had higher returns than the S&P 500 so far this year as the so-called seven major technology companies have failed to provide the boost they have long provided. They recommend going long on Chinese stocks because they don't expect the trade and technology wars to escalate. On the bond side, Bank of America expects U.S. Treasury yields to fall below 4% as U.S. President Trump looks to address government spending and stop a debt spiral while also hoping Congress will approve his tax cuts. (Jinshi)