Nov. 21 at 3:27 PM
Global fund managers expect international stocks to outperform in 2026, according to Bank of America’s latest global fund manager survey. The poll, which gathers views from around 400 institutional, mutual and hedge fund managers, found that 42% believe non-U.S. equities will lead markets next year, while just 22% see U.S. stocks taking the top spot. That marks a clear shift from a year ago, when investors favored U.S. equities, the Russell 2000 and the U.S. dollar.
The renewed optimism around overseas markets follows a strong 2025 for international equities, with the Vanguard FTSE Developed Markets ETF up about 24% year-to-date, well ahead of the S&P 500’s roughly 12% gain. Still, with more than a month left in the trading year, market dynamics could swing as low holiday liquidity often brings choppy moves — though any short-term volatility may not be sustainable.
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