By Mehnaz Yasmin

(Reuters) -More global investors are rotating into non-U.S. “value” stocks, fund managers say, as stretched U.S. valuations, rising fiscal strains, and weakening cash flow forecasts make rallying American equities look comparatively less attractive.

Investors have withdrawn $152 billion from U.S. growth funds in the first nine months of 2025, even as the S&P 500 advanced into record high territory, already equaling total outflows for all of 2024, LSEG data for September showed.

Asset managers overseeing more than $6 trillion told the Reuters Global Markets Forum that investors expect non-U.S. “value” and small-cap equities to benefit from overseas dovish monetary policy, increased fiscal stimulus, and cheaper valuations.

Outside the U.S., stronger earnings, margins and

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