(Bloomberg) – Despite the previous week’s market recovery, foreign investors “according to Dutash Bank AG,” remain on the strike of buyers on American property. ,
How foreign investors are behaving in recent weeks, to achieve almost “real -time” window, head of the FX bank’s FX strategy, George Sarvellos saw the flow in various types of funds, who take money from abroad and make it channels in American shares and bonds.
The data shows a “sharp stop” in the purchase of American assets by foreign buyers in the last two months, there was no indication of a turnaround last week when the clouds looked at the markets, Sarvellos wrote in a note on Monday.
The report states, “Our widespread takes up that the flow proof indicates one, best, the US capital flow continues to slow down and, the worst, active disintegration from the worst, American assets,” the report states. “Either interpretation is a challenge for USD as a twin deficit currency.”
The dewash bank strategist was rapid on dollar, especially against the euro, for more than a year till February. Since then, he has emerged as one of the most vocal bears, warning that the dollar is in danger of losing his position as a global reserve currency, if the economic policies of President Donald Trump led investors to dump the accumulated American property in the last decade.
While the US has long been a magnet for foreign assets, the flow has been particularly notable in recent years because the US markets improved the rest of the world. According to Dutash Bank’s estimates, the share of US assets in the holding of European investors was quadrupled by 20% in 2024, from about 5% in 2010, and doubled among Japanese investors.
The dollar slipped with US shares and treasures after Trump announced his plan to put tariffs on trading partners in early April. The rare celloff simultaneously expressed concern that foreign investors were retreating from the US markets.
To receive more frequent-up-updated reads on these trends, Sarvellos said that he is investigating the daily flow in about 400 US-centric exchange traded funds, which are dominated abroad, as well as with weekly data on the wider universe of closed and open-edited investment funds.
“Our conclusion from both matrix does not look beautiful,” Sarvellos wrote.
The report states that continuous sales in ETF data are most notable, where investors are selling both shares and bonds. In a large group of funds, which conducted an investigation by Sarvellos-which includes more slow-running players, and more directors outside Europe have stopped purchasing American shares, but were not yet pure sellers. On the other hand, with bonds, data has shown “aggressive sales”.
This month Saravelos revised its forecast for the dollar, saying that Trump’s policies are reducing the hunger of foreign investors to meet the country’s trade and budget deficit. Strategist US currency falls from $ 1.30 and 2027 to $ 1.14 and 142 yen from $ 1.14 and 142 yen to about $ 1.30 as of the Euro.
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