--- title: "Is the \"American exceptionalism\" waning? The attractiveness of U.S. stocks has dropped to a more than five-year low, significantly underperforming overseas markets" type: "News" locale: "en" url: "https://longbridge.com/en/news/276452959.md" description: "The attractiveness of the U.S. stock market relative to other major global markets has fallen to its lowest point in over five years. According to an analysis by Michael Hartnett, Chief Investment Strategist at Bank of America, only $26 out of every $100 flowing into global equity funds this year has been allocated to U.S. stocks, marking the lowest proportion since 2020. Hartnett pointed out that this indicates the \"American exceptionalism\" narrative is coming to an end, as investor interest in U.S. stocks is waning, primarily due to concerns over over-investment in large tech companies, a weakening dollar, and improving global economic expectations" datetime: "2026-02-20T14:30:58.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/276452959.md) - [en](https://longbridge.com/en/news/276452959.md) - [zh-HK](https://longbridge.com/zh-HK/news/276452959.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/276452959.md) | [繁體中文](https://longbridge.com/zh-HK/news/276452959.md) # Is the "American exceptionalism" waning? The attractiveness of U.S. stocks has dropped to a more than five-year low, significantly underperforming overseas markets The attractiveness of the U.S. stock market relative to other major global markets is falling to its lowest point in over five years. According to Michael Hartnett, Chief Investment Strategist at Bank of America, only $26 out of every $100 flowing into global equity funds this year has been allocated to U.S. stocks, the lowest proportion since 2020 and significantly lower than the peak level of $92 in 2022. Hartnett pointed out that this change in capital flow indicates that the long-discussed "American exceptionalism," where U.S. assets consistently outperform globally, is coming to an end. However, rather than a large-scale withdrawal from U.S. assets, it is more accurate to say that the relative willingness to allocate funds has clearly decreased. From a market performance perspective, the U.S. stock market has significantly lagged behind overseas markets this year. Since 2026, the S&P 500 index has been nearly flat, while the MSCI World Index, excluding the U.S., has risen nearly 8% during the same period. Investor interest in U.S. stocks has cooled, primarily due to multiple concerns, including excessive investments by large tech companies in artificial intelligence, a weakening dollar driven by Trump administration policies, and a preference for cyclical stocks amid improving global economic growth expectations. Capital flow data also confirms this trend. Bank of America cited EPFR Global data indicating that, so far this year, stock funds in Europe, Japan, and other developed international markets have attracted approximately $125 billion in inflows, while U.S. stock-related funds have only recorded about $35 billion. ![WeChat Screenshot_20260220091940.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260220/1771597194155736.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Hartnett previously noted that U.S. trade policies are shaping a "new world order" and may reshape the global capital allocation landscape. 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