Investor love affair with the US is over
Australianretail investors have lost faith in US stocks and have started to look elsewhere, placing the US markets under pressure to provide a stable investment ground, says AMP head of strategy and chief economist Shane Oliver.
Oliver believes the way the current market is heading, there will be in the future, a time when Asia is more popular with investors than the US.
While this is quite a turn around from years past, it appears the US is losing its grip as the stronghold of the global investment community.
“I think the love affair with the US is almost over. However, if it is not over, then it is surely wearing off,” Oliver says.
“The grinding of the bear markets in the US stocks is a driver of this, and global investors are becoming more cautious about making US investments,” he says.
Oliver says in the past there has been an underlying feeling among investors that even when the technology stocks crashed and investors lost confidence in the Asian markets, the US market was still the place to put your money.
However, according to Oliver, the truth of the matter is the US dollar is under pressure, and with investor confidence continuing to plumb new depths, the pressure continues to rise. And it seems the US market is feeling the heat from both sides, with equity terms in the US starting to slow, he says.
The drop in confidence by retail investors has also reached the masses, with Oliver claiming consumers are shying away from more traditional USinvestments such as the US’s car manufacturing industry, instead preferring to look at a more rational focus, and not binding themselves to the US.
Recommended for you
Join us for a special episode of Relative Return Unplugged as hosts Maja Garaca Djurdjevic and Keith Ford are joined by shadow financial services minister Luke Howarth to discuss the Coalition’s goals for financial advice.
In this special episode of Relative Return Unplugged, we are sharing a discussion between Momentum Media’s Steve Kuper, Major General (Ret’d) Marcus Thompson and AMP chief economist Shane Oliver on the latest economic data and what it means for Australia’s economy and national security.
In this episode of Relative Return Unplugged, co-hosts Maja Garaca Djurdjevic and Keith Ford break down some of the legislation that passed during the government’s last-minute guillotine motion, including the measures to restructure the Reserve Bank into a two-board system.
In this episode of Relative Return Unplugged, co-hosts Maja Garaca Djurdjevic and Keith Ford are joined by Money Management editor Laura Dew to dissect some of the submissions that industry stakeholders have made to the Senate’s Dixon Advisory inquiry.
