US EditionU.S. Investors Shift $75 Billion from Domestic Stocks to Overseas Markets Since Mid-2025
U.S. investors withdrew $75 billion from domestic stocks, reallocating to emerging and developed markets due to cheaper valuations and stronger cyclical growth, data shows.
- In the last six months, U.S. investors pulled $75 billion from U.S. equity products, with $52 billion leaving since 2026 start, LSEG/Lipper data shows.
- Big Tech fatigue and AI risks, combined with the S&P 500 trading at roughly 21.8 times forward earnings versus Europe at roughly 15 times, prompt rotation from growth stocks.
- So far this year, U.S. investors have poured US$26 billion into emerging-market equities, with inflows of US$2.8 billion to South Korea and US$1.2 billion to Brazil, according to LSEG/Lipper data.
- Bank of America's February fund manager survey showed the fastest shift into emerging markets in five years, while overseas dividends in dollar terms rise despite a weaker dollar and European banking stocks surged 67% last year.
- The shift reflects a broader diversification trend gaining traction among U.S. investors in the past year and persists despite a 10 per cent decline in the dollar since last January, marking a departure from the post-2009 'buy America' pattern.
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7 Articles
How a symbolic shift from "Buy" to "Bye" is reshaping U.S. markets
U. S. investors are withdrawing money from their stock market at the fastest rate in over 16 years, with $75 billion pulled out in the last six months. Of this, $52 billion has exited since the beginning of 2026, marking the largest outflow in the first two months of the year since at least 2010. […] The post How a symbolic shift from “Buy” to “Bye” is reshaping U.S. markets appeared first on Modern Diplomacy.
The US president has other problems than just the Supreme Court ruling on his illegal punitive tariffs. Billions are pouring out of the US market for entirely different reasons.
Donald Trump has more to contend with than tariffs. Now American investors are moving money from Wall Street to markets in Europe and Asia at a faster rate than in 16 years.
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