US investors sell stocks, favoring European equities

Investors are pulling out of American stocks and moving their money into European equities. This shift is happening at the fastest pace in 25 years, fueled by concerns over former President Donald Trump’s trade policies. Fund managers predict a significant slowdown in the US economy this year. A recent survey by Bank of America showed that this could lead to the biggest move away from American stocks since records started in 1999. Rising inflation and lowering consumer confidence are making investors anxious. These factors have increased worries about a possible recession in the US, which grew by 2.8 percent last year. In contrast, European markets are seeing strong performance. European stocks are experiencing their best start to a year since the 1980s. Investors are encouraged by lower valuations and decreasing interest rates. Germany's announcement of a €500 billion investment fund also supports this positive trend.