HSBC strategists halve their exposure to US stocks and shift to emerging markets and Europe

According to Jin Ten, HSBC strategists have halved their exposure to the U.S. stock market and increased investments in emerging markets and Europe, as the latter shows strong economic conditions. Over the past two months, key cyclical indicators such as consumption and manufacturing have shown growth. The strategists stated that the positive trends in technicals, positioning, and market sentiment can offset concerns regarding geopolitics, trade, and artificial intelligence. So far this year, the S&P 500 index has risen by 1.5%, the global stock index excluding U.S. stocks has increased by 11%, and the emerging markets benchmark index has risen by 15%.