Investors withdraw from US stocks due to uncertainty

Many international investors are pulling their money out of the US stock market. They point to high stock prices, political issues, and concerns about US foreign policy. A notable trigger was a comment by former President Donald Trump calling Canada the "51st State." This upset many investors, leading some to take action. Keith Moffat, an investor based in the Netherlands, sold all his US stocks after holding 90% of his portfolio in them. He is now investing in international exchange-traded funds and European defense stocks. Moffat questioned why anyone would keep their money in a market that seems increasingly unpredictable. US stocks have faced challenges this year. The S&P 500 index is down by 3.6%, while European markets have seen growth. The Stoxx 600 index in Europe has increased by 8.3%, and Germany's DAX has surged nearly 15%. Investors say that rising uncertainties in the US, including a new tariff plan by President Trump, are also making them rethink their investments. Some investors are converting their assets to European markets due to financial uncertainty and geopolitical risks. For example, Peter Stern, an American living in Germany, is shifting to European equities out of concern for the safety of his money. He has focused on defense-related stocks, which are doing well as military spending increases. Despite the shift, some US investors are still hesitant to leave the domestic market. However, there is a growing sentiment that opportunities may be better elsewhere. Investors are watching upcoming US economic data carefully, as it could influence their confidence in the US market.