The exceptional mix of factors that have helped US equities markedly outperform the rest of the world for more than a decade is near a peak, according to Bank of America strategist Michael Hartnett.

“US exceptionalism [is] now exceptionally expensive, exceptionally well-owned – outperformance to peak in 2025 as excess government spend ends, immigration reduced and DeepSeek means peak in AI capex return expectations,” he said in a note.