International equities have overtaken the United States in investors’ long-term return expectations, according to Bank of America’s June 2025 Global Fund Manager Survey. The poll found that just under one-quarter of respondents now expect US stocks to deliver the best performance over the next five years, while a majority—slightly more than half—see the strongest gains coming from markets outside the country. Japan is drawing particular attention: Bank of America said foreign investors are becoming “more positive” on Japanese shares, adding to a broader shift in sentiment toward Asia and Europe. Year to date, Eurozone equities are up 24% and global stocks outside the US have risen 15%, compared with a 2% gain in the S&P 500, reinforcing the perception that leadership is moving abroad. The rotation in sentiment comes even as overseas investors continue to own a significant share of US equities. Data compiled by Apollo Sløk show that foreigners now control 18% of the US stock market, underscoring that allocations to the world’s largest equity market remain substantial despite the growing appetite for international diversification.