It looks like the rest of the world is bearish on the United States, while everyone at home is bullish on the world’s largest economy. Do foreigners know something Americans don’t?
In the last 12 months, foreigners dumped $205 billion in U.S. stocks in the last 12 months. This represents the largest liquidation of U.S. equities in history, and it could be a sign of things to come as foreign investors search for opportunities elsewhere.
Central banks are also dumping Treasurys as they sold $157 billion in bonds for the fifth consecutive month.
This not exactly a sign of confidence that the U.S. is in for another decade-long bull market.
Without the rest of the world propping up the United States, then how can it survive?
(H/T Zero Hedge)
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