This week in charts
Foreign investment in U.S. fixed income assets
Momentum crowding still at extremes
Sector contribution to 2025 EPS growth estimates
Forward price-to-earnings ratios by geography
MSCI U.S. price-to-earnings decline during past recessions
MSCI Japan Index price-to-book relative to MSCI World Index
Share of domestic equity ownership and valuations
Share of U.S. firms using AI by sector
Housing vs. rental affordability
Big investors shift away from US markets
The US president’s erratic trade policy has shaken global markets in recent months, sparking a sharp sell-off in the US dollar and leaving Wall Street stocks lagging far behind European rivals this year.
Trump’s landmark tax bill, which is forecast to add $2.4tn to Washington’s debt over the next decade, has also increased pressure on US Treasuries.
The move away from US assets has pushed up European markets at the expense of their US counterparts and has been signalled by surveys of big institutional investors’ allocation decisions. A poll of fund managers published by Bank of America last month showed the biggest underweight in the US dollar in nearly two decades.
As institutional investors review the extent of their holdings in the US, Caisse de dépôt et placement du Québec, Canada’s second-largest pension fund, said recently it would reduce its exposure to the country — currently 40 per cent of its portfolio. It plans to increase investment in the UK, France and Germany.
US stocks have recouped the losses that followed Trump’s announcement of the duties on April 2. But the S&P 500 remains less than 2 per cent up this year, compared with 9 per cent for the Stoxx Europe 600 index.
The dollar is close to a three-year low — down 9 per cent this year — even though Trump has retreated on many of the tariffs he initially announced.
Investors say that the global dominance of the US economy and the depth of its capital markets mean it will remain the premier destination for global investment.
However, many are questioning whether more than a decade and a half of inflows and outperformance — which pushed the US share of global equity market value to around two-thirds by the start of this year — is headed into reverse.
Some investors question whether smaller, more fragmented markets in Europe and Asia offer a meaningful alternative.
This week’s fun find
World’s First Mass-Produced Flying Car Prototype Unveiled
Eager teens reaching driving age in the next few years may be able to take their inaugural spin in a car … in the sky. The world’s first mass-produced flying automobile prototype has been unveiled, and we’re ready for a ride.
Created by Slovakia-based company Klein Vision, the AirCar production prototype made its public debut May 8, after making its insider debut at the 2025 Living Legends of Aviation Awards Ceremony in Beverly Hills late last month. At the event, Morgan Freeman and John Travolta presented the car’s inventor, Stefan Klein, with a Special Recognition Award for Engineering Excellence.
