Wells Fargo has advised investors to reduce their holdings in emerging market equities and instead increase exposure to U.S. stocks. Despite recent gains in emerging markets, Wells Fargo cited concerns about weak long-term performance and structural risks such as political instability and economic challenges in China. This recommendation contrasts with some other market participants who are favoring emerging markets. Meanwhile, Bank of America's May 2025 Global Fund Manager Survey indicates that fund managers are overweight in the Eurozone, cash, and healthcare sectors, while being underweight in U.S. stocks, energy, and consumer discretionary sectors. The survey also notes that investors are overweight utilities, bonds, Europe, and bank stocks but underweight energy, U.S., global, and technology stocks. BlackRock's positioning shows an underweight stance on U.S. Treasuries and an overweight allocation to U.S. and Japanese equities. These differing views highlight a divergence in investment strategies among major financial institutions regarding U.S. and emerging market equities.