A Dopey Move out of International Stocks
Who knows? Maybe everybody has their strategic asset allocations just how they like them now, but I doubt it, since most people don't have strategic asset allocations. Trimtabs says US investors are reining in their foreign equity investments:
. . .
"The exuberance of American investors for foreign stocks is coming to an end," says Charles Biderman, president of fund-flow tracker TrimTabs.
Biderman started seeing the bulk of U.S. dollars flow into international funds last December when Americans grew jittery over a weakening dollar and a shaky U.S. economy. He says many investors took their cues from famed value investor Warren Buffett after he made negative comments on the U.S. economy and placed big bets against the U.S. dollar.
. . .
So many US investors and funds are far too light on international stocks, if you believe people like Burton Malkiel and Jeremy Siegel. A pullback now is a dumb move, particularly for long-term investors. Global growth is going to happen globally. That's why they call it global.