Why Wall Street Investors Are Ditching US Stocks in September 2025 for Foreign Banks and Gold Miners
- Why Are Investors Abandoning US Stocks This September?
- Where’s the Money Flowing Instead?
- The Dollar’s Decline and Geopolitical Risks
- Who’s Getting Left Behind?
- Is This Just a Short-Term Rotation?
- FAQs: Your September 2025 Investment Questions Answered
September 2025 is shaping up to be a brutal month for US equities, with Wall Street investors fleeing overvalued tech stocks and shifting capital into European banks, Asian chipmakers, and Canadian Gold miners. Lazard Asset Management’s $422 million International Dynamic Equity ETF (IEQ) is leading the charge, betting big on undervalued foreign assets amid dollar weakness and geopolitical turbulence. Here’s why the smart money is going global—and where they’re parking their cash.
Why Are Investors Abandoning US Stocks This September?
Historical data doesn’t lie: September is the worst month for the S&P 500, Dow Jones, and Nasdaq. In 2025, the trend is accelerating. The BTCC research team notes that US equity valuations have hit unsustainable levels, with the S&P 500 trading at 22x forward earnings while European banks hover NEAR 8x. "The math is simple," says Paul Moghtader of Lazard. "When you compare a French bank yielding 6% dividends to a US software stock burning cash, the choice gets obvious."
Where’s the Money Flowing Instead?
Lazard’s IEQ ETF tells the story:
- European Banks (35% allocation): BNP Paribas (+94% YTD), Société Générale, and Barclays dominate the portfolio. BNP’s acquisition of AXA Investment Managers solidified its position as Europe’s 5th-largest asset manager.
- Gold Miners (12%): Barrick Gold (+72%) and Kinross (+125%) act as macro hedges. "Gold’s the only asset smiling when rates and currencies go haywire," quips Moghtader.
- Asian Tech (28%): Taiwan Semi, Samsung, and Tencent benefit from cheaper valuations versus US peers.
The Dollar’s Decline and Geopolitical Risks
TradingView charts show the USD Index down 14% since January, making foreign assets cheaper for dollar-based funds. Meanwhile, US-China chip wars and EU regulatory shifts have investors seeking stable jurisdictions. "European banks are like 2008 US banks—hated, cheap, and about to surprise," notes a BTCC analyst.
Who’s Getting Left Behind?
The casualties are clear:
| Sector | YTD Performance |
|---|---|
| US Tech (ex-AI) | -18% |
| European Media | -8% (last 2 months) |
| Advertising (WPP) | -71% H1 profits |
Is This Just a Short-Term Rotation?
Unlikely. Lazard’s models show international equities could outperform for 3-5 years. Their four-pillar stock analysis (valuation, growth, quality, sentiment) flags US tech as "overbought" versus global cyclicals. Even AI can’t save software firms—Lazard dumped AppLovin and Cadence, arguing "AI tools make developers redundant."
FAQs: Your September 2025 Investment Questions Answered
Why are European banks suddenly attractive?
Post-COVID restructuring and rising rates have boosted net interest margins. BNP’s 6% dividend yield beats 90% of S&P 500 stocks.
How risky are gold miners with inflation falling?
Kinross’ 125% surge shows miners aren’t just inflation plays—they’re geopolitical hedges. Gold tends to spike during currency crises.
Should I sell all my US stocks?
This article does not constitute investment advice. Diversification matters—consult a financial advisor about your specific portfolio.
