(Investorideas.com
Newswire) a go-to platform for big investing ideas, including AI and
tech stocks issues market commentary from deVere Group.
Global investors are rotating away from US equities despite
President Trump’s stock market optimism in last night’s
State of the Union speech, asserts the CEO of one of the
world’s largest independent financial advisory organizations.
The analysis from Nigel Green of deVere Group comes as President
Trump used his State of the Union address to spotlight record highs
in US stock markets, presenting equity performance as clear evidence
of economic strength under his administration.
Yet fresh investor positioning data indicate one of the most
significant rotations away from US equities in decades.
Although US benchmarks have touched record territory in recent
months, performance this year has lagged major European and Asian
indices.
The S&P 500 has traded in a narrow and largely directionless
range, modestly negative on the year, even as overseas markets
advance.
Regular global fund manager surveys show the strongest positive
allocation to eurozone assets on record.
Over recent months, overweight positions in European equities have
surged, while underweight allocations to US stocks have more than
tripled.
Nigel Green, Founder and CEO of deVere Group, says:
“President Trump is right to highlight record market levels.
But markets are forward-looking mechanisms. When we examine
capital flows rather than speeches, we see a clear and measurable
broadening of exposure beyond the US.
“Market participants report that while large-scale capital
flight is not occurring, incremental global flows are increasingly
being directed away from the United States.”
He continues: “For more than a decade, US exceptionalism has
anchored global portfolios, driven largely by tech sector
dominance.
“As volatility increases around AI-related names and
economic growth moderates to 1.4% annualized, allocators are
reassessing concentration risk.”
The shift reflects multiple converging pressures. The extraordinary
reliance on a narrow group of large-cap tech stocks has left US
indices vulnerable to sector-specific pullbacks.
At the same time, improving fiscal momentum in parts of Europe,
particularly Germany, and stabilising sentiment indicators across
the eurozone are encouraging a reweighting of global exposure.
Importantly, recent policy adjustments from Washington, including
recalibrations around tariffs, have not triggered a sustained
rebound in US equity leadership. Relative performance trends suggest
the reallocation is structural rather than reactive.
The deVere CEO adds: “Of course, the US remains a core engine
of global growth.
“But capital markets evolve. Investors aren’t reducing
US exposure out of sentiment; they’re, sensibly, increasing
diversification because risk-adjusted opportunities are broadening
elsewhere.”
Record inflows into European equity funds underscore the scale of
the shift. For the first time in decades, the dominance of US
equities within global benchmark allocations is being actively
questioned by institutional investors.
The contrast between the State of the Union emphasis on record highs
and the quieter rebalancing within global portfolios highlights a
defining feature of 2026 markets: headline index levels alone no
longer dictate capital direction.
As the year progresses, sustained earnings breadth and renewed
sector leadership will determine whether US equities regain relative
momentum.
For now, the data show that global capital is incrementally
repositioning, with the balance of flows suggesting the shift is
gathering pace.
Nigel Green concludes: “President Trump’s State of the
Union address celebrated where markets have been. Investors are
positioning for where they are going.
“Those are, perhaps, two very different
conversations.”
