LONDON (Reuters) – Investor allocations to U.S. equities has hit a record high this month, at the expense of European stocks, commodities and cash, according to a December survey from BofA Global Research.

This shift, according to a survey of 171 participants with $420 billion of assets under management, is on the back of U.S. growth optimism, bets that Donald Trump’s second term as president will bring in tax cuts and deregulation, and looming rate cuts from the Federal Reserve.

Allocation to cash are at its lowest since at least April 2021, to commodities, at the lowest since June 2017 and investors have the biggest underweight in European stocks since October 2022.

That means investors are the most overweight U.S. equities relative to the euro zone since June 2012, the time of the sovereign debt crisis in the single-currency bloc.

(Reporting by Alun John; Editing by Amanda Cooper)