(UBS)
Nevertheless, for the remainder of 2025, we believe that US equities will outperform European equities and that the US should remain a core component of a well-diversified global equity strategy. The key question for investors, then, is what the right overall allocation to US equities should be within a global portfolio.
The US currently comprises over 64% of the MSCI All Country World index, and a simple rule of thumb is to allocate at least half of global equities to the US. Investors significantly below this level should consider building up US allocations ahead of a period of expected relative outperformance.
Meanwhile, those with US equity allocations well above this level should use near-term strength to diversify—potentially into emerging market equities, where we also expect outperformance.
For more, see the UBS House View Quarterly - 2H outlook: Action amid uncertainty .
