Global Stock Market Reversal! BofA Securities July Report: End of US Stock Dominance, Return of Value Investing

BofA Securities' July 9 mid-year review predicts global stocks (ex-US) will outperform S&P 500 by 11pp in 2025, best performance since 2009. Core allocation strategy: equity preference for value and quality assets, fixed income using "prudent yield" strategy (current yield 5.2%, 12-month return 6.9%), inflation hedge via real assets. Economic outlook: 2025 global GDP growth 3.0%, Fed no cuts in 2025, potential 100bp cuts in 2026. Significant soft-hard data divergence: hard data +0.3 standard deviations above average, soft data -0.6 below average, pessimistic sentiment may catalyze H2 rally. AI and defense viewed as non-overhyped long-term themes: AI enterprise adoption rose from 4% to 9%, NATO 2035 defense spending target 5% of GDP. ETF valuations elevated, median PE 15.5x, aerospace/defense 2 standard deviations above average.

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Two CFA professionals crack open everyday’s Wall Street Journal, distilling the essential headlines, the biggest winners and losers. The show is conversational—no jargon, no rambling—but backed by decades of combined experience on the research desk and trading floor. Perfect for your commute, coffee break, or pre-market scan.