REUTERS/Mike Blake
"The U.S. is the least-favored region with a net 18 percent saying it's the region they most want to underweight, up from a net 9 percent in April," said BofA Merrill Lynch in their press release.
Instead, European equities markets are now most favored.
A net 28% said Europe is the region they most want to overweight, up from a net 23% a month ago. A net 14% said European equities are undervalued. For most of 2014, at least 60% said U.S. stocks are overvalued.
"Investors are showing belief in the economy but with two big question marks: Are we on the brink of a disruptive event? And why, at this point in the cycle, isn't this recovery stronger?" said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.
"Specifically, within Europe, investors are all aboard the periphery train, and there's now simply no margin for error. Spanish and Italian equities are preferred over those in the U.K. and Switzerland, while eurozone periphery debt is seen as the most crowded trade globally," said Obe Ejikeme, European equity and quantitative strategist.