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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