Bank von Ernst, the Swiss private bank, is reducing its US exposure and increasing the weighting of i...
The company believes that the US is about to enter a period of economic slowdown in the face of rising interest rates and commodity prices.
On the other hand, the bank believes that Europe is in the process of moving into an economic recovery.
These factors, combined with the restructuring stories seen throughout the EU, has persuaded Bank von Ernst to make the shift.
Peter Bolland, who heads up the bank's UK operations, said: "The index gains in 1999 are attributable to a tiny circle of companies - mostly technology stocks. The valuations are extremely optimistic in many cases, leaving the market vulnerable to corrections.
"We are anticipating that there will be a cooldown in the US economy during 2000.
"The increase in individual commodity prices, shortages affecting some parts of the labour market and interest rate rises will squeeze margins. Bank von Ernst is therefore accentuating its underweighting of the US."
60+ £300bn ISA savings
Total funds on list rise from 26 to 58
What made financial headlines over the weekend?
Q2 net sales dropped almost 50%