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2026-02-22 09:11:13
[US Investors Withdraw from US Stocks at the Fastest Rate in 16 Years] (1) Due to diminishing returns from large technology companies and better performance in overseas markets, US investors are withdrawing from their domestic stock market at the fastest rate in at least 16 years. In the past six months, US investors have withdrawn approximately $75 billion from US stocks, of which $52 billion has flowed out since the beginning of 2026 alone, marking the largest outflow in the first eight weeks of any year since 2010. (2) The withdrawing funds are flowing heavily into overseas markets. So far this year, US investors have invested approximately $26 billion in emerging market stocks, with South Korea and Brazil being the main destinations; since January last year, nearly $7 billion has also flowed into European stock markets. (3) The core factors driving this massive migration of funds are valuation differences and rate of return gaps. Although the depreciation of the US dollar has increased the cost of overseas investment, the dollar-denominated returns in global markets far exceed those of US stocks: in the past 12 months, the Nikkei index has risen by 43%, European stocks by 26%, the CSI 300 by 23%, the Seoul Composite Index by more than double, while the S&P 500 has only risen by 14%. In terms of valuation, the S&P 500's forward P/E ratio is as high as 21.8 times, far exceeding Europe's 15 times, Japan's 17 times and China's 13.5 times. (4) Market style is also quietly shifting. Investors are shifting from overvalued technology growth stocks to traditional value stocks, and this rotation is happening simultaneously around the world. European bank stocks surged 67% last year and rose another 4% this year, becoming a typical representative of capital flows.
