UBSStrategists such as Evan Brown and Ryan Primmer of asset management wrote in a report that they should invest in regions that are still in the early stages of the cycle, such as Europe and emerging markets.
They say that due to global growth andManufacturing activity is more exposed, with European and Japanese stock markets expected to outperform the US.
"there is no choice but Europe," they wrote, saying that European data were brighter than those of the United States, suggesting that European currencies would appreciate against the dollar.
The expansion of economic momentum outside the United States is likely to continue to weaken the dollar.
Strategists prefer stocks to bonds and take a position to reduce their holdings of sovereign bonds, but they also say that "the rise in share prices is likely to slow for the rest of the year."