U.S. Stocks Poised for Continued Global Dominance Due to Tech Strength and Earnings Outlook
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U.S. stocks have reached unprecedented dominance in the global market. An equity strategist thinks this divergence will become even more extreme.
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The strategist lists 7 reasons supporting continued U.S. stock outperformance, including strong profit cycles and tech stock leadership.
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Tech stocks have pushed the ratio between the Nasdaq 100 and small caps to record highs. This could continue with rates staying elevated.
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U.S. stock market breadth has recovered recently but tech stocks keep rallying too. This should increase the U.S. weighting globally.
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U.S. earnings outlook remains strong, making a shift away from U.S. leadership unlikely. However, some disagree and see opportunities abroad.