A Huge Foreign Overweight Is A Problem For US Stocks

US equities are exposed to more declines as overseas investors’ portfolios are rebalanced to reflect a changing risk environment.

Powell is safe for now, it seems, but that does not necessarily apply to foreign capital in US markets. London-headquartered fund Janus Henderson is considering a 10% cut in its US assets. Amundi has said that clients are “massively” repositioning into Europe.

Authored by Tyler Durden via ZeroHedge April 23rd 2025