Investors Shift from U.S. Stocks to Foreign Assets Amid September Volatility

Wall Street is witnessing a notable exodus from U.S. equities this September, as historical trends signal potential market downturns. The S&P 500's breach of 6,500 and the Dow Jones' fresh highs in August failed to instill confidence, with investors instead flocking to foreign banks, Gold miners, and chipmakers.

Data from Dow Jones reveals September's notorious reputation for market declines, prompting institutions like Lazard Asset Management to pivot toward European and Asian markets. The firm's $422 million Lazard International Dynamic Equity ETF, launched in May, reflects this strategy—carrying a 0.40% expense ratio and a five-star Morningstar rating.

Paul Moghtader, Lazard's managing director, cites stretched U.S. valuations, dollar weakness, and geopolitical risks as catalysts for the shift. 'Markets are increasingly volatile and risky,' he notes, emphasizing the appeal of international exposure as volatility intensifies into 2025.