Core Viewpoint - A significant shift in investment sentiment is observed, with 54% of fund managers believing that international stocks (excluding the US) will outperform US stocks over the next five years, indicating a decline in the dominance of the US stock market [1][2]. Group 1: International Stocks vs. US Stocks - The term "international stocks" refers to stock markets outside the US, including both developed and emerging markets such as Europe, Japan, Canada, Australia, and various emerging markets like China, India, and Brazil [2]. - This is the first time Bank of America has asked institutional investors to predict the best-performing asset class over a five-year horizon, reflecting a growing trend of "Sell America" since April [2][3]. - If fund managers' predictions hold true, it would reverse the trend of heavily investing in US stocks, which have outperformed international stocks in 13 out of the last 15 years [2][3]. Group 2: Market Performance and Trends - The S&P 500 index has recorded its largest underperformance against the MSCI World Index (excluding the US) since 2009, with European stocks showing a rare trend of outperforming US stocks by 20% after adjusting for currency fluctuations [3]. - Amundi SA's report indicates that ongoing uncertainty in US government policy and a growing budget deficit will create a challenging environment for the economy and markets, prompting a shift in focus towards European and emerging markets [3][4]. - Jeffrey Gundlach, CEO of DoubleLine Capital, suggests that the "American exceptionalism" narrative is collapsing, predicting a long-term depreciation of the US dollar and continued outperformance of international stocks [4]. Group 3: Fund Manager Sentiment - In the latest Bank of America survey, 59% of institutional investors do not expect a boost in US economic activity from the government's spending plans [5]. - 21% of respondents anticipate an increase in US Treasury yields over the next year, the highest proportion since August 2022 [5]. - There is a notable shift in asset allocation preferences, with a net 31% of investors planning to reduce their holdings in the US dollar and a net 36% planning to reduce their exposure to US stocks [5].