Recent data from Bank of America indicates a record rotation of U.S. equity investments towards European markets, driven by German fiscal stimulus. In 2025, nearly $26 billion in block trades have occurred in European equities, marking the largest wave of such activity this century. As U.S. market sentiment declines, hedge funds are increasingly divesting from U.S. assets to invest in Europe, with Goldman Sachs reporting that hedge funds have been selling off U.S. exposure to buy into European stocks. This trend is evident as hedge funds are betting against sectors such as construction, finance, and energy in Europe, reflecting a broader shift in investment strategies among corporates, families, and private equity funds.