Bloomberg: Global Investors Dumping US Stocks at Record Pace

Image: Bloomberg: Global Investors Dumping US Stocks at Record Pace (Stock Photo Secrets)

By R Williams   |   Friday, 10 Jun 2016



Investors outside the country dumped $128 billion in U.S. stocks in the past year, data from the Treasury International Capital System show.

Despite the higher quality of companies in the U.S., long-term investors may be drawn to the faster pace of growth in other economies, Stewart Warther, an equity strategist at BNP Paribas SA, told Bloomberg News.

Big-name investors are expecting U.S. markets to fall as the global economy weakens.
Billionaire investor George Soros has launched a series of "big, bearish investments" after a long break from trading, the Wall Street Journal reported, citing people close to the matter.

Soros has been warning of “intractable” political and economic problems in China, Europe and other areas that he thinks will soon negatively affect U.S. and Western stock markets.
Soros Fund Management, which manages around $30 billion for the Soros family, sold stocks and bought gold and shares in gold miners, amid a "gloomier" view of the global economic outlook and the potential for large market moves, the WSJ reported.

Soros has become more involved in trading at his family office, concerned about the outlook for the global economy and the risk that large market shifts may be at hand, a person familiar with the matter told Bloomberg News.

Soros, 85, has been spending more time in the office directing trades and recently oversaw a series of big, bearish investments, said the person, who asked Bloomberg News not to be identified discussing private information.

Soros Fund Management LLC sold stocks and bought gold and shares of gold miners last quarter, anticipating weakness in various markets, according to a government filing.

Soros' firm bought over 19 million shares of Barrick Gold Corp. in the first quarter, according to securities filings, making it the firm’s largest stockholding at the end of the quarter. That position has gained more than $90 million since the end of the first quarter, WSJ.com reported.

Soros Fund Management also bought a million shares of miner Silver Wheaton Corp. in the first quarter, a position that has increased 28% so far in the second quarter. Investors often view gold as a haven during times of turmoil, the WSJ explained.

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