Wall Street’s richest investors are ditching US assets and loading up on Europe instead
The post Wall Street’s richest investors are ditching US assets and loading up on Europe instead appeared on BitcoinEthereumNews.com. The biggest names in finance are bailing on the US. Wall Street’s wealthiest institutions are cutting down on their dollar holdings and piling into European markets, as new data shows a massive pullback from US equities and bonds. According to the Financial Times, this is not a one-time reaction. It’s a long-term retreat, driven by chaos in Washington, falling confidence in the Federal Reserve, and the latest wave of tariff fights started by President Donald Trump. The White House has been on a warpath against the Fed chair, while the broader policy outlook has turned into a mess. Even though US stock prices bounced after Trump’s “liberation day” tariffs, they’re still down this year, and trailing behind global competitors. Meanwhile, the US dollar has lost over 7% since January, and traders are now watching what some are calling early signs of a capital exodus into safer European investments like German bonds. European equities soak up investor money while ETFs bleed Luca Paolini, chief strategist at Pictet Asset Management, said the flow is already underway. “It is happening. It will be slow but inevitable,” he said, pointing to low valuations and Germany’s rising defense budget as clear reasons why investors see more value in Europe. The evidence is everywhere. In March, a Bank of America survey showed investors made their biggest cut ever to US stock holdings, and the pivot to Europe was the fastest since 1999. In April, €2.5 billion flowed out of European-domiciled ETFs holding US stocks and bonds—the highest figure since early 2023, based on Morningstar Direct data. The bleeding didn’t stop there. Early May numbers show more outflows from equity ETFs, though fixed-income ones managed to claw back a bit of interest. Spot markets are seeing a steady dump of US dollars in favor of euros, and…
The post Wall Street’s richest investors are ditching US assets and loading up on Europe instead appeared on BitcoinEthereumNews.com.
The biggest names in finance are bailing on the US. Wall Street’s wealthiest institutions are cutting down on their dollar holdings and piling into European markets, as new data shows a massive pullback from US equities and bonds. According to the Financial Times, this is not a one-time reaction. It’s a long-term retreat, driven by chaos in Washington, falling confidence in the Federal Reserve, and the latest wave of tariff fights started by President Donald Trump. The White House has been on a warpath against the Fed chair, while the broader policy outlook has turned into a mess. Even though US stock prices bounced after Trump’s “liberation day” tariffs, they’re still down this year, and trailing behind global competitors. Meanwhile, the US dollar has lost over 7% since January, and traders are now watching what some are calling early signs of a capital exodus into safer European investments like German bonds. European equities soak up investor money while ETFs bleed Luca Paolini, chief strategist at Pictet Asset Management, said the flow is already underway. “It is happening. It will be slow but inevitable,” he said, pointing to low valuations and Germany’s rising defense budget as clear reasons why investors see more value in Europe. The evidence is everywhere. In March, a Bank of America survey showed investors made their biggest cut ever to US stock holdings, and the pivot to Europe was the fastest since 1999. In April, €2.5 billion flowed out of European-domiciled ETFs holding US stocks and bonds—the highest figure since early 2023, based on Morningstar Direct data. The bleeding didn’t stop there. Early May numbers show more outflows from equity ETFs, though fixed-income ones managed to claw back a bit of interest. Spot markets are seeing a steady dump of US dollars in favor of euros, and…
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