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Political pressure on electricity rates creates uncertainty for utility stocks in 2026, despite the sector delivering 16% returns so far this year driven by AI data center demand.
A recent Bank of America survey reveals a significant shift in investor sentiment, with 42% of global fund managers now forecasting that international stocks will be the top-performing asset class in 2026. This pivot away from a U.S.-centric view comes amid a complex global economic landscape, where a persistent bullish narrative on U.S. artificial intelligence clashes with a weakening dollar and mixed domestic economic signals.
A Bank of America survey shows global fund managers' cash reserves have fallen to a record low, signaling extreme bullishness. This has triggered a historical contrarian indicator to sell equities, suggesting markets are increasingly vulnerable to economic shocks.