{"id":14503,"date":"2025-05-02T21:13:16","date_gmt":"2025-05-02T21:13:16","guid":{"rendered":"https:\/\/finderica.com\/?p=14503"},"modified":"2025-05-02T21:13:16","modified_gmt":"2025-05-02T21:13:16","slug":"foreign-investors-worry-about-u-s-reliability-ex-bridgewater-strat","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=14503","title":{"rendered":"Foreign investors worry about U.S. reliability: Ex-Bridgewater strat"},"content":{"rendered":"<div id=\"NewsShowArticle-ArticleBody-6\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"NewsShowArticle-articleBody-6-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108137671\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108137671\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000374138\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><span class=\"InlineVideo-videoButton\"><\/span><span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<div class=\"ArticleBody-blockquote\">\n<p><a href=\"https:\/\/www.cnbcevents.com\/fast-money-live-june-2025\/\" target=\"_blank\" rel=\"noopener\"><em>Join us<\/em><\/a><em> for the ultimate, exclusive, in-person, interactive event with Melissa Lee and the traders for &#8220;Fast Money&#8221; Live at the Nasdaq MarketSite in Times Square on Thursday, June 5.<\/em><\/p>\n<\/div>\n<p>Global investors are undergoing a structural rethink of their exposure to U.S. markets, according to economic expert Rebecca Patterson.<\/p>\n<p>Patterson, who served as Bridgewater&#8217;s chief investment strategist, contends they&#8217;re gradually reducing exposure to U.S. assets and the impact could be significant. Her prediction comes after having conversations with participants\u00a0in last week&#8217;s World Bank and International Monetary Fund meetings in Washington.<\/p>\n<p>&#8220;There are a large number of foreign investors who are worried not only about tariffs, but just about America&#8217;s reliability as a partner,&#8221; Patterson said Monday on CNBC&#8217;s &#8220;Fast Money.&#8221;<\/p>\n<p>Outside of the Trump administration&#8217;s tariff policy, she finds foreign investors and policymakers are losing faith in the U.S. on broader fears about the potential weaponizing of capital markets to achieve its economic goals.<\/p>\n<\/div>\n<div class=\"InlineImage-imageEmbed InlineImage-inlineInfographic\" id=\"ArticleBody-InlineImage-108132848\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div class=\"InlineImage-imagePlaceholder\" style=\"padding-bottom:56.17977528089888%\">\n<div><button class=\"InlineImage-closeEnlargedImage\"><svg width=\"20\" height=\"20\" viewbox=\"0 0 20 20\" fill=\"#002F6C\" aria-labelledby=\"title desc\" role=\"img\" focusable=\"false\" data-analytic-id=\"expand-icon\" class=\"InlineImage-background\"><title>Zoom In Icon<\/title><desc>Arrows pointing outwards<\/desc><circle cx=\"10\" cy=\"10\" r=\"10\" fill=\"white\" stroke=\"#002F6C\"><\/circle><path d=\"M9.20185 10.7982C8.96049 10.5568 8.57037 10.5568 8.32901 10.7982L5.67901 13.4482V11.2346C5.67901 10.8938 5.40308 10.6173 5.06173 10.6173C4.72037 10.6173 4.44444 10.8938 4.44444 11.2346V14.9383C4.44444 15.279 4.72037 15.5556 5.06173 15.5556H8.76543C9.10679 15.5556 9.38271 15.279 9.38271 14.9383C9.38271 14.5975 9.10679 14.321 8.76543 14.321H6.55185L9.20185 11.671C9.44321 11.4296 9.44321 11.0395 9.20185 10.7982ZM14.9383 4.44446H11.2346C10.8932 4.44446 10.6173 4.721 10.6173 5.06174C10.6173 5.40248 10.8932 5.67903 11.2346 5.67903H13.4481L10.7981 8.32903C10.5568 8.57038 10.5568 8.96051 10.7981 9.20187C10.9185 9.32224 11.0765 9.38273 11.2346 9.38273C11.3926 9.38273 11.5506 9.32224 11.671 9.20187L14.321 6.55187V8.76545C14.321 9.10619 14.5969 9.38273 14.9383 9.38273C15.2796 9.38273 15.5556 9.10619 15.5556 8.76545V5.06174C15.5556 4.721 15.2796 4.44446 14.9383 4.44446Z\"><\/path><\/svg><\/button><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>That may put global investors&#8217; U.S. holdings at risk, according to Patterson. Foreigners held more than $31 trillion of U.S. assets as of last June, according to the most recent <a href=\"https:\/\/home.treasury.gov\/news\/press-releases\/sb0037\" target=\"_blank\" rel=\"noopener\">U.S. Treasury data<\/a>. That&#8217;s an increase of $4.4 trillion from the prior year. The gains came as U.S. markets reached all-time highs, thanks in part to megacap tech and the artificial intelligence trade.<\/p>\n<p>&#8220;They are looking at a huge U.S. allocation that has built up over the last several years and saying, &#8216;maybe we should have a little bit less, just trim off the tops&#8217; \u2014 basically, have a risk premium on U.S. assets because we have so much uncertainty,&#8221; she said.<\/p>\n<p>Even a small reduction in global participation could present a problem for U.S. markets, Patterson warns.<\/p>\n<p>&#8220;Pretend you&#8217;re the chief investment officer of a major overseas pension fund or sovereign wealth fund. I&#8217;m going to take 2% off my U.S. stocks, 2% off my U.S. bonds, a 4% shift,&#8221; she said. &#8220;That&#8217;s $1.2 trillion that is going to be leaving the U.S. now.&#8221;<\/p>\n<p>A potential $1.2 trillion sell-off represents 2.3% of the\u00a0S&amp;P 500\u2032s total market capitalization, as of Friday&#8217;s close. Still, Patterson emphasizes the capital flight will not happen overnight.<\/p>\n<p>&#8220;These investment committees will take months to think about things. They&#8217;ll have a meeting, they&#8217;ll have a board approve it and then it gets implemented. But what this is, is a slow bleed of support out of the U.S. markets, either going back to home markets or into new opportunities, or things like <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"NewsShowArticle-QuoteInBody-6\">gold<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span>,&#8221; said Patterson.<\/p>\n<p>U.S. stocks have broadly underperformed other global equities so far in 2025, with the S&amp;P down 4.7% in that time. Europe&#8217;s broad-based <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"NewsShowArticle-QuoteInBody-8\">STOXX 600<span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"><\/span><\/button><\/span><\/span><\/span> index has gained 5.7% this year, while the MSCI AC Asia Pacific Index has risen 2.4% over the same period, per FactSet.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/05\/02\/foreign-investors-worry-about-us-reliability-ex-bridgewater-strat.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join us for the ultimate, exclusive, in-person, interactive event with Melissa Lee and the traders for &#8220;Fast Money&#8221; Live at the Nasdaq MarketSite in Times Square on Thursday, June 5. Global investors are undergoing a structural rethink of their exposure to U.S. markets, according to economic expert Rebecca Patterson. Patterson, who served as Bridgewater&#8217;s chief<\/p>\n","protected":false},"author":1,"featured_media":14504,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[5975,4224,81,1912,5976,272,1539],"class_list":{"0":"post-14503","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-exbridgewater","9":"tag-foreign","10":"tag-investors","11":"tag-reliability","12":"tag-strat","13":"tag-u-s","14":"tag-worry"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14503","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14503"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/14503\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/14504"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14503"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14503"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14503"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}