Investors trim US equity exposure into year-end – BNY

BNY economists report that despite an improving risk appetite as year-end approaches, investors are reducing their exposure to previously high-performing US equity markets. Specifically, US portfolio weightings have notably fallen from early-year peaks. This trend may reflect concerns about the outlook for the US economy and the effects of rising global interest rates. With core inflation remaining elevated, investors are compelled to reassess their portfolios while mitigating risk. The overall market's fluctuations suggest a diminishing appeal for US equities. Furthermore, year-end volatility driven by capital inflows and outflows could exacerbate market conditions. In light of these circumstances, investors seem to be seeking a more cautious approach, emphasizing a risk-averse stance.