Tuesday, 02 January 2024 12:17 GMT

Dutch Investors Scale Back US Exposure Amid Geopolitical Strains


(MENAFN) Nearly one-third of private investors in the Netherlands report reducing their investments in the United States, as rising geopolitical tensions between Washington and Europe influence their strategies, according to a survey released on Friday by Dutch bank ING.

The survey indicates that many investors are shifting capital toward European markets, citing concerns over political uncertainty and overall stability.

“The tensions are making investors think; they’re making much more conscious choices now,” Bob Homan, head of the investment office at ING, said.

He added that a significant number of investors are looking for steadiness within European markets, as stated by reports.

The findings also show that 49% of respondents are either purchasing fewer American financial products or avoiding them entirely, and are traveling to the US less frequently, if at all.

Despite this cautious approach, ING noted there is no evidence of a widespread retreat from US equities. Homan described the behavior as a natural adjustment, observing that “the US stock market is also lagging behind Europe and the rest of the world.”

Investor confidence overall remains solid, even after prior market fluctuations connected to tariff tensions, the survey revealed.

“They remain steadfast because investors were not significantly affected by the tariff war, when stock markets temporarily fell,” Homan said.

Additionally, the survey highlighted a rising interest in sustainable investments, especially in wind and solar energy firms, partly driven by the growing energy demands of AI-powered data centers, according to reports.

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