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Wall Street wealthy investors sell U.S. assets and turn to the European market.
According to a report by the Financial Times on May 10, Deep Tide TechFlow news indicates that the world's largest Financial Institution is reducing its dollar assets and increasing investments in the European market. Data shows that investors are massively withdrawing from the U.S. stock and bond markets. This long-term divestment trend is influenced by the political chaos in Washington, declining confidence in The Federal Reserve (FED), and the latest tariff dispute initiated by Trump.
Since January of this year, the US dollar has depreciated by over 7%, and traders are now watching for signs of funds shifting towards safer European investments such as German bonds. According to a Bank of America survey, investors made the largest ever reduction in their holdings of US stocks in March, with the speed of the shift to Europe being the fastest since 1999.
Multiple national pension funds are leading this divestment trend. Finland's Veritas Pension Insurance Company, Australia's UniSuper fund, and Denmark's pension funds have all reduced their holdings in US assets. The head of strategy at BNP Paribas stated that if European pension funds reduce their exposure to US assets to 2015 levels, it would mean selling off investments worth €300 billion.