HSBC has cut its exposure to US equities and increased its European and EM exposure, stating bearish narratives has not changed as cyclical and AI-driven indicators remain positive

HSBC has cut its exposure to US equities and increased its European and EM exposure, stating bearish narratives has not changed as cyclical and AI-driven indicators remain positive.

HSBC's strategic shift away from US equities in favor of European and emerging market assets reflects their view that bearish narratives on the U.S. economy remain intact despite positive cyclical and AI-driven indicators. This move could signal a broader trend in global equity allocations, suggesting potential caution towards U.S. markets while favoring regions that may offer better risk-reward profiles given current economic signals.