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By Opalesque Geneva:

A rebalancing is taking place. Global equity investors are no longer focusing so much on the U.S. despite the dramatic rallies, reported the FT last week. Analysis of recent data from fund-tracker EPFR by SocGen shows investors putting more than $175bn into "ex-U.S." global equity mutual funds and ETFs over the past month, compared with just over $100bn into global funds that include U.S. stocks. This in partly due to U.S. risk aversion and to the value of US dollar, which has fallen 10% against a basket of peer currencies YTD.

Since 1970, U.S. and global markets have traded turns in leading performance. The current U.S. run, which began after the Global Financial Crisis, has been unusually long. While this in itself does not mean it is over, one should bear in mind that outperformance tends to rotate over time, according to J.P. Morgan Asset Management, who suggested that developed international stocks may produce better annual returns than U.S. equities over the next 10 to 15 years. The assumed difference is about 1.4% annually - specifically, 8.1% for EAFE stocks (Europe, Australasia, Far East) versus 6.7% for U.S. stocks.

The Barometer Global Equity Fund, a Canadian fund that invests in large cap, in......................

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