HSBC strategist Kettner reduces allocation to U.S. stocks, favors other regions globally

HSBC strategists have halved their overweight position in U.S. stocks, shifting their allocation towards emerging markets and European markets amid strong economic momentum. The team led by Max Kettner remains firmly risk-on, noting that key cyclical indicators (such as spending and manufacturing) have improved over the past two months. Kettner stated, "We are more inclined towards this stronger cyclical momentum and currently hold a more overweight position in stock markets outside the U.S." The strategists believe that the positive trends in technicals, positioning, and market sentiment are sufficient to offset the volatility caused by geopolitical issues, trade frictions, and concerns over artificial intelligence