Max Kettner, HSBC’s chief multi-asset strategist, is putting a timestamp on the end of US market dominance. His assessment: investors have until roughly August before the American exceptionalism trade runs out of runway.
The prescription? Start leaning into Europe. In Kettner’s words, investors may want to be “perhaps really leaning a bit more into that European story.”
HSBC’s strategic pivot from US equities
This isn’t a sudden change of heart for Kettner or HSBC. Back in February, the bank halved its US equity overweight, redirecting capital toward cyclical sectors and emerging markets. That move came amid signals of a broader global recovery that didn’t require the US to do all the heavy lifting.
Kettner has framed the US economy as experiencing a K-shaped recovery, where different sectors and equity classes are producing wildly divergent outcomes.
