Global Investors Abandon US Stocks for UK Market Amidst Trade War Fears
Global investors dramatically shifted their portfolios in March, exiting US equities at an unprecedented rate and increasing their UK stock allocation to its highest point since June 2021. This move, making the UK the third most overweight sector for global investors, represents a significant reversal from the previous month’s assessment of the UK market as the least attractive. The shift is attributed to waning confidence in “US exceptionalism” and growing fears of a global trade war, leading to decreased global growth expectations and a surge in cash holdings. This reallocation also benefited European stocks, signaling a broader change in investment strategy.
John Q. Hosedrinker