American investors are pulling money from their domestic stock market at the fastest rate in 16 years as big tech returns diminish, prompting a shift toward more attractive foreign markets.
American investors are increasingly withdrawing funds from their own stock market, driven by diminishing returns from 'big tech' companies, with outflows recorded at a remarkable pace not seen in at least 16 years. In the past six months alone, around $75 billion has been withdrawn from U.S. equity products, with $52 billion pulled out just in the early weeks of 2026. This trend marks the highest withdrawal volume in the first eight weeks of the year since at least 2010, indicating a significant shift in investor behavior.
The change occurs despite a weakening dollar, which traditionally makes foreign assets more expensive for American investors. This seems to be a strong indicator that the trend of diversifying away from American assets, observed among international investors over the past year, is now taking hold among U.S. investors as well. As the landscape shifts, many are increasingly enticed by better-performing foreign markets, seeking potentially greater returns.
Since the end of the global financial crisis in 2009, the "buy America" strategy has been rewarding for investors; however, the current climate suggests that many are reconsidering their stance. A growing sentiment among investors may reflect concerns about long-term growth potential within the U.S. market, as they look abroad for opportunities amidst ongoing volatility within big tech stocks.
