Bank of America: The global dominance of US stocks is weakening, it's suggested to buy more Chinese stocks

Strategists at Bank of America, including Michael Hartnett, predict that the leading advantage of the U.S. stock market will continue to fade after it stops its continuous rise in early 2025. They point out that so far this year, the returns from stock markets in Brazil, Germany, UK, China and Canada have all exceeded the S&P 500 index. This is because the so-called seven major tech companies have failed to provide their long-standing driving force. They suggest going long on Chinese stocks as they anticipate trade and tech wars will not escalate. In terms of bonds, Bank of America expects US Treasury yields to drop below 4% as President Trump hopes to resolve government spending issues and prevent debt from spiraling upwards while also hoping for Congress's approval on his tax cut plan.