According to a report on November 14 by Financial Network (Editor: Huang Junzhi), after Trump's victory, the US stock market rebounded, pushing investors' stock exposure to the highest level in 11 years. A survey by bank of america of fund managers shows that this bullish sentiment is expected to continue.

The survey results show that fund managers generally predict that USA stocks will be the best-performing assets next year, driven by pro-business policies promised by the Trump administration. Since the conclusion of the USA election, the three major stock indexes have all reached historic highs, and the s&p 500 index has even surpassed the 6000 point mark for the first time.

Bank of america analyst Michael Hartnett wrote in the latest report that the survey shows a "significant increase in bulls," rising from 10% in October to 29%. These survey participants collectively manage assets totaling 503 billion dollars.

They also stated that besides the USA stock market, global stock markets and gold are also expected to perform well next year. Additionally, the allocation of emerging markets stocks has increased from 21% to 35%.

The survey results also show that 28% of these investors expect that the USA economy will grow at a faster pace next year. This starkly contrasts with last month's survey results, where 22% of respondents expected economic growth to slow down.

Small cap stocks will be the biggest winners.

In the USA stock market, the surveyed fund managers overwhelmingly expect that small cap stocks will make up the majority.E-mini Russell 2000 Index (E-mini Russell 2000) will be the best-performing index next year. About 35% believe that the usa small cap index will outperform large cap next year.

Fund managers expect small caps to perform well during "Trump 2.0" as they lack international exposure, which will minimize the risk of comprehensive import tariffs proposed by Trump.

Since the election, these stocks have also seen inflow, with the e-mini russell 2000 index soaring nearly 6% since election day.

In addition, the survey also shows that 28% of respondents expect the technology-heavy nasdaq index to outperform large cap, followed by morgan stanley's capital international emerging markets index, which has a proportion of 15%.

The dollar performs well.

Surveys show that 45% of respondents expect the dollar to outperform large cap after the usa election. The dollar strengthens due to expectations that policies proposed by Trump, including trade tariffs, will boost inflation and lead to the Federal Reserve lowering interest rates by less than previously expected.

In contrast, 28% of investors expect gold to outperform large cap, and 20% expect the yen to outperform large cap. Meanwhile, 51% of fund managers believe the dollar is overvalued, an increase of 5 percentage points compared to a month ago.

Editor / jayden