Wall Street Exodus: Investors Dump U.S. Stocks for Foreign Banks & Gold Miners in September

Wall Street's big money is making a sharp pivot—ditching U.S. equities at a startling pace this September. The flight isn't just a shuffle; it's a strategic sprint into foreign banking giants and gold mining stalwarts.

Following the Smart Money

Institutional heavyweights bypass homegrown stocks, chasing value and yield abroad. Foreign banks lure with stability—gold miners glitter with safe-haven appeal. No surprise, really, when the Fed's next move stays murky and inflation lingers like a bad houseguest.

Timing the Tide

September's shift cuts deep. It’s not a dip-buy—it’s a sector rotation with global teeth. Gold’s historic hedge against uncertainty pulls weight, while overseas financials offer growth without Stateside regulatory headaches. Classic Wall Street—selling fear, buying opportunity, and always finding a way to charge you for both.

Where the Flock Flies

Capital migrates fast. European and Asian banks gain traction; mining ETFs spike. Gold’s rally isn’t just a flash—it’s flight capital in action. And if you think this is just another September slump, think again. This reeks of a longer play—one that snubs U.S. volatility for calmer, shinier shores.

So much for 'America First'—when returns dip, loyalty vanishes faster than a crypto bro’s life savings.

Lazard bets on foreign banks and miners as U.S. tech gets dumped

Paul Moghtader, managing director at Lazard and the head of the firm’s Advantage Team, told CNBC that volatility in 2025 has gotten worse, not better.

“Markets are increasingly volatile and risky. We’re seeing risk injected from many different sources, and an international exposure is getting more attractive relative to U.S. for many reasons, including the valuation, more shareholder focus,” Paul said.

He said he breaks every stock down using four categories: valuation, growth, quality, and sentiment. They even factor in how a company’s beta relates to GDP growth, a macroeconomic LAYER that Paul said lets them weigh the risk or opportunity of every position inside a real-world backdrop.

The Lazard ETF, trading under the ticker IEQ, now includes stocks like Taiwan Semiconductor Manufacturing, BNP Paribas, Novartis, Tencent Holdings, and Samsung Electronics. Canadian gold miners are also in, thanks to strong signals from Lazard’s in-house screening models.

The firm’s overweight on European banks, particularly BNP, which is the second-largest holding after Taiwan Semi. BNP now holds just over 2% of the entire fund. Paul pointed to BNP’s AXA Investment Managers acquisition, finalized on June 30, which made BNP the fifth-biggest asset manager in Europe.

Other top bank names in IEQ include Societe Generale, Barclays, Japan Post Bank, and State Bank of India. Societe Generale is up a massive 94% this year, helped by strong Q2 earnings and a rebound in retail operations.

Barclays is up 34%, and Japan Post Bank has gained 25%. Lazard’s strategy favors these names for their low valuations and above-average dividend yields, a sharp contrast to overvalued U.S. tech.

The ETF also includes a smaller position in Canadian gold miners. Around 1% of the portfolio is in Barrick Mining, Kinross Gold, and Torex Gold. Barrick is up 72% this year, and Kinross has exploded by 125%.

Paul said the team sees gold as protection against macro uncertainty, especially in a year like this, where both rates and currencies are unpredictable. The portfolio has been moving away from software entirely.

Lazard dumped names like AppLovin, Gartner, and Cadence Design Systems in August, citing the rise of AI. Paul said software development is becoming easier and cheaper with AI tools, making some companies less attractive from a value and growth standpoint.

In response, the firm has picked up shares in Amphenol, Erickson, Western Digital, and NetGear, betting instead on hardware and connectivity players.

Outside of Lazard’s moves, broader sector shifts are showing similar cracks. Europe’s banking sector hit its highest level since 2008 at the beginning of August. Names like Commerzbank are up over 100% year-to-date, thanks to strong earnings and renewed deal activity.

Meanwhile, media stocks are falling apart. They’ve dropped more than 8% over the last two months. AI concerns are tearing into European names, especially in advertising. WPP posted a 71% fall in pre-tax profit in the first half of the year and slashed its full-year outlook, making it the worst performer in the entire sector.ft.

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