Reuters reports:

U.S. investors are pulling money out of their own stock market at the fastest pace in at least 16 years as Big Tech returns fade and better-performing overseas markets look more attractive.

In the last six months, U.S.-domiciled investors have pulled some $75 billion from U.S. equity products, with $52 billion flowing out since the start of 2026 alone, the most in the first eight weeks of the year since at least 2010, according to LSEG/Lipper data.

The shift comes despite a weakening of the dollar against other currencies, which makes buying overseas assets more expensive for U.S. investors. It’s a compelling sign that the diversification away from U.S. assets by some international investors in the past year is gaining traction among U.S. investors.

Since the global financial crisis ended in 2009, the “buy America” trade has rewarded investors at home and abroad thanks to a strong economy and earnings growth and dominance in the tech sector leading to outsized gains in U.S. stocks.

More recently, the AI boom pushed the S&P 500 index (.SPX), opens new tab to record highs last year, a strong buffer from U.S. President Donald Trump’s unpredictable approach to trade policy and diplomacy, as well as his attempts to undermine Federal Reserve independence.

But as concerns have grown about the possible risks from AI, as well as the costs involved, the lure of Wall Street stocks has ebbed. The surge in value in the U.S. megacap tech stocks that have led gains until now are making investors pickier and many are spotting more attractive opportunities elsewhere.

Bank of America’s February fund manager survey showed investors switched from U.S. equities to emerging market equities at the fastest rate in five years. [Continue reading…]