Bank of America: The early-year rally of the US stock market is "weak" and its global dominance is diminishing.

Bank of America strategists also note that the narrative around the structural strength of the US economy relative to its competitors is dissipating, with investors betting on geopolitical stability in the Middle East and Ukraine. Additionally, they recommend going long on Chinese stocks as they expect the trade and tech war between China and the US to not escalate. Hartnett's team states that, except for Wall Street, most regions' stocks are "leading the US's outstanding performance." However, they warn that investors may take profit on European stocks if Russia and Ukraine start peace talks after the German election in a few weeks. In bonds, Bank of America expects US Treasury yields to fall below 4% as President Donald Trump seeks to address government spending issues and prevent a debt spiral while also hoping Congress will approve his tax cuts. Bank of America cites data from EPFR Global that, as of February 5, a week saw $46.8 billion flow into money market funds, with $16.6 billion going into bonds and $600 million flowing out of equity funds.