Investors Cut Back On US Stocks, Seek Growth Abroad

CNBC:

Even as the US market continues to rally, many institutional investors are trimming their US holdings and putting more money in foreign stocks--especially those in emerging markets.

Read the whole story: CNBC

Comments

[drymartini1]

it has always been a wise idea to invest about 25% of your assets in overseas markets...­.its called diversification !!

[blueken]

It's a matter of trust. For 23 years I have invested in only US companies, because I trusted our system. My trust has been badely shaken, and those who's errors created this mess, are unprepentant. The focus of Wall Street seems to be on bonuses and creating "black boxes" that no one understands. There was a time when Wall Street took money from hard working people and invested in companies that created valueable goods and services. I believed in that model. I have no faith in todays model of creating magic beans and castles made of sand. Wall Street doesn't seem to recognize how badly they have shaken the public's faith in what they do. I seems like my only option is to dollar vote and invest in overseas markets.

[marijam]

What happens once U.S. bonds, in addition to stocks, are abandoned?

[Furby2]

Funny you should mention that. I bought a Municipal Bond the other day with a guaranteed 4.1% return for 10 years, redeemable anytime and zero risk. Hmmm, guaranteed 4.1% a year or US equities, hmmmm. I'm too old and have seen too many "corrections" to be anything but a bear for now. If ever the US market goes back down to 7000, I'll buy back in.

[hellboundtrain]

It can't be any surprise that America will be shunned for the havoc that our oh-so-clever financial "professionals" on Wall Street and politicos in Washington have created for us.

Prepare for the shunning.

[xlntcat]

Well, this is hardly news. Prior to the collapse investors were favoring emerging economies. There is no way that the U S can grow like an emeriging economy.

[hellboundtrain]

Yes, that's true, but the fact is that many millions of investors got skinned because of fraudulent practices here, and those are the chickens that are coming home to roost.

The great money masters and their political toadies can't construct such a framework of deceit without being called to account.

[William50]

I find it interesting that no one sees America as a growth area for investment. That means with the destruction of jobs and wages investors feel they have a better chance in Asia or Europe. Too bad for them.
I also find it interesting that the billions to save the banks just means they are investing that almost no interest money in other countries, not in America.
For all the negative I an going to ask you, look around what has changed. The land, homes and people the core of America is still here. We still mine ore, make steel, build and buy, what has changed is leadership in this country.
So.. here is the pitch to you. If you want a strong America, full time jobs, good benifits that pay fully the health insurance costs and a retirement look at where your two political parties have put you....in the hole and with out.
To scale out of this hole the D@R have put you in is easy and hard. You have to reject both political parties and understand the way into the future is in your hands. You are the future of America. Your hands and minds are the power of America, stop being led like a bunch of sheep and decide where you want America to go.
middle american 2010
Casey

[marijam]

Hope for $4 per gallon gasoline so that globalization will be forced into reverse.

[NoMoreBail2]

More innovation means more environmental destruction widening of wealth gap, and displaced workers

hat tip to; http://financeopinionss.blogspot.com

[Chilito]

You are so right! I think you should be awarded the Nobel prize for economics! It is so elegantly simple!

Think about it. All we have to do is stop innovating and redistribute whatever anyone who has more than someone else to someone who has less until the entire planet has the same amount of stuff. A sublime orld harmony and perpetual equality will ensue.

What a genius!

[markm8128]

I don't think innovation in solar, or other green energy, result in increased environmental destruction. The only problem with electric vehicles, and bullet trains...i­s that we are not pursuing the obvious, vigourously enough.

[Lex38]

First jobs are shipped abroad, now investor dollars.

Does this mean that investors understand that money can no longer be made in America? That America is just a (debt laden) consumer nation and no longer a money making producer? I guess their dollars think so.

[KCFreedom]

Hey, but those financial "innovations" are so ingenious, the average American and regulating bureaucrat can't figure them out.

Brand me an ignoramus.

[KCFreedom]

Yea, because our corporations are intentionally crippled beyond repair.

It's all just "paper". There's no real assets, and we're not producing anything.

Who with a brain would invest in THAT?

[markm8128]

Warren Buffet said....th­e 19th century belonged to the British, the 20th century belonged to the Americans, and the 21st century will belong to the Chinese.

There have been about 40 empires throughout history, and every one of them eventually crumbled. We need to face the fact that our empire has collapsed. This is not a 'recession', but the complete collaspe of our banking system, combined with total bankruptcy of our federal government­., combined with the fact that we are being out-competed in every corner of the globe.

When the British empire crumbled, they did not collapse into poverty, because they retained their extensive investments around the globe. Our only hope is to invest our money in emerging markets...­where all of the growth is expected to be....and bring the profits home to live on.

Sorry if I am being too blunt about this!

[KCFreedom]

Nope, no apology necessary.

All that is left is "The Matrix".

[xlntcat]

Well it may not be quite a grim as you paint it, but we have been in decline for the past 20 years. We are becoming an increasingly uneducated populus and unless we get serious about changing the coarse of the failing American education system, we cannot continue to be a prosperous nation.