Recent data from Bank of America reveals a significant increase in investor sentiment towards U.S. stocks. The overweight rating for U.S. equities has surged to 29%, a notable rise from a previous 10%, marking the highest level since August 2013. This suggests a growing confidence among investors in the U.S. stock market's potential.
In addition to the overall increase in U.S. stock ratings, there has been a marked shift in preference towards small-cap stocks over large-cap stocks. The overweight rating for small-cap stocks has jumped to 35%, up from 6%. This trend indicates a changing dynamic in investment strategies, potentially driven by optimism about the growth prospects of smaller companies.
