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
In this episode of Relative Return Insider, host Keith Ford and AMP economist My Bui explore Prime Minister Anthony Albanese’s trip to the US and the critical minerals deal stemming from his meeting with President Donald Trump.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
In the latest episode of Relative Return Insider, host Keith Ford and AMP chief economist, Dr Shane Oliver, discuss this week’s RBA interest rate decision, a potential government shutdown in the US, and a new property scheme aimed at first home buyers.
