Displaying items by tag: stocks

Global investors are increasingly reallocating away from U.S. equities, even as Wall Street continues to notch record highs. Fund-flow data from Société Générale and EPFR show record inflows into global equity funds that exclude U.S. stocks, signaling a push for broader diversification. 

Europe and emerging markets have benefited most from this trend, with European equity products seeing record inflows this year. Currency effects and heightened U.S. policy risks under the Trump administration have also encouraged investors to look abroad. 

While many acknowledge the U.S. remains the world’s deepest and most dynamic market, its high valuations and narrow leadership have amplified concentration risks. 

Finsum: Portfolio managers should a more globally balanced approach, blending exposure to the U.S. with selectively priced opportunities overseas.

Emerging-market stocks and currencies fell sharply after strong U.S. economic data reduced expectations for multiple Federal Reserve rate cuts this year. MSCI’s currency benchmark dropped more than 0.3%, marking its largest one-day loss since July, while a similar gauge for equities slipped 0.7%, the steepest decline since late August. 

Traders now see a diminished chance of two Fed cuts by year-end, as U.S. growth accelerated and jobless claims fell. Sentiment was further pressured by geopolitical risks, including rising tensions between Russia and NATO and fiscal concerns in countries such as Poland and Indonesia. 

The Philippine peso and Indonesian rupiah led declines, while the Polish zloty and Hungarian forint also weakened on regional political and energy disputes. 

Finsum: Despite recent setbacks, some strategists still expect emerging-market assets to recover toward year-end on macro tailwinds and favorable seasonality.

Consumer midcap stocks are starting to show technical strength, with Victoria’s Secret, TripAdvisor, and Steve Madden emerging as standouts beyond the usual Tesla and Amazon focus. 

Victoria’s Secret has surged nearly 50% in three months, breaking out of a consolidation range and reclaiming its 200-day moving average, a sign of a potential trend reversal. TripAdvisor has gained 28% this year, with activist involvement and technical support around $18 pointing to a possible move toward $25. 

Steve Madden, despite being down 27% in 2025, has built a base at $20 and is showing signs of institutional accumulation, suggesting a rebound toward $50 by mid-2026. Retail sales data this week also provided a positive backdrop for the sector, reinforcing momentum for midcaps. 

Finsum: As strength broadens, overlooked mid-cap consumer names like these may offer compelling opportunities relative to the mega caps that dominate headlines.

Global equity funds attracted $8.71 billion in net inflows, reversing the previous week’s $4.4 billion outflow, as risk appetite returned. Investor optimism was fueled by solid U.S. economic data, progress on trade deals with Japan and the EU, and upbeat early earnings reports, including record profits from TSMC and a forecast bump from PepsiCo. 

European equity funds led the charge with $8.79 billion in inflows, their best showing in 11 weeks, while U.S. equity outflows slowed significantly. Sector-wise, tech rebounded with $1.61 billion in inflows, while financials and industrials each brought in over $1 billion. 

Global bond funds continued their 14-week inflow streak, adding $17.94 billion, led by short-term, euro-denominated, and high-yield bond categories. Commodity funds saw a resurgence too, with gold and precious metals funds notching $1.9 billion in net inflows, their strongest showing in over a month.

Finsum: If optimism over trade deals and AI-driven earnings continues to build, we could be on the verge of a sustained equity rally that pulls even hesitant U.S. investors off the sidelines.

Inflation is cooling faster than expected, with May’s consumer price index rising just 0.1%, easing fears of a recession triggered by Trump-era tariffs and boosting investor confidence. A recent trade agreement between the U.S. and China, along with a tariff pause, has further calmed markets and revived interest in equities. 

With inflation slowing and pressure mounting on the Federal Reserve to cut rates again—potentially as early as September—investors are increasingly eyeing growth opportunities. 

Large-cap growth funds like T. Rowe Price Large Cap Growth (TRLGX), Blue Chip Growth (TRBCX), and Fidelity Contrafund (FCNTX) are drawing attention for their solid long-term returns and favorable expense ratios. These funds target high-quality, established companies positioned for above-average earnings growth, making them attractive in a more stable rate environment. 

With diversification benefits and relatively low costs, they offer a compelling way for investors to capitalize on improving macroeconomic conditions.