Wall Street Investors Flee US Stocks in September 2025, Pivot to Foreign Banks and Gold Mines
- Why Are Investors Bailing on US Stocks This September?
- Where’s the Money Flowing Instead?
- The Dollar’s Decline and Geopolitical Chess
- AI’s Unintended Victims
- Contrarian Plays Paying Off
- FAQ: Your Burning Questions Answered
September has historically been a brutal month for US markets, and 2025 is no exception. Data shows investors are dumping overvalued US tech stocks and shifting capital into European/Asian banks, Gold miners, and semiconductor giants like TSMC. Lazard Asset Management leads the charge with its $422M international ETF, citing dollar weakness and geopolitical risks. Meanwhile, European banks like BNP Paribas surge 94% YTD while media stocks collapse under AI pressure. Here’s why the smart money is going global—and where they’re parking their funds.
Why Are Investors Bailing on US Stocks This September?
History doesn’t lie: Since 1928, the S&P 500 averages a 1% drop in September—the worst month for US equities. This year, the exodus is accelerating. "Markets are facing a triple threat: inflated tech valuations, dollar instability, and AI disrupting entire sectors," notes the BTCC research team. Case in point: Lazard’s International Dynamic Equity ETF (IEQ) saw inflows spike 300% in August as institutions rebalanced portfolios.
Where’s the Money Flowing Instead?
Three sectors dominate the 2025 rotation:
- European Banks (42% of IEQ holdings): BNP Paribas (+94% YTD) and Societe Generale lead the pack after AXA’s $1.4B acquisition boosted assets. Their P/E ratios (avg. 8.3) look downright cheap compared to US megabanks at 12.7.
- Gold Miners (6% allocation): Barrick Gold’s 72% surge reflects demand for "chaos insurance" as central banks flip-flop on rates. Kinross Gold even hit a 10-year high.
- Asian Tech (33% weight): Taiwan Semiconductor (TSMC) now comprises 9% of IEQ. "Chips are the new oil," quips portfolio manager Paul Moghtader, citing TSMC’s 5nm plant expansions.
The Dollar’s Decline and Geopolitical Chess
When the DXY index dipped below 100 in July, it triggered a chain reaction. "A weak dollar makes overseas earnings more valuable," explains Moghtader. His team screens stocks using GDP-linked beta metrics—a fancy way of saying they bet on companies tied to growing economies like India (State Bank of India: +18% since June).
AI’s Unintended Victims
While Nvidia soars, legacy software firms are crumbling. Lazard dumped AppLovin and Cadence Design Systems, arguing "AI tools let startups build apps for pennies." The fallout? WPP’s ad revenue plunged 71% as clients shifted to AI-generated campaigns.
Contrarian Plays Paying Off
Some moves defy conventional wisdom:
| Asset | YTD Gain | Dividend Yield |
|---|---|---|
| Japan Post Bank | 25% | 3.8% |
| Novartis | 14% | 4.1% |
Source: TradingView as of 2025-09-01
FAQ: Your Burning Questions Answered
Why September?
Portfolio rebalancing post-summer vacations and Q3 profit-taking create a perfect storm. Since 2000, the Dow falls 1.2% on average this month.
Is Gold Still Relevant?
Absolutely. With 5 central banks cutting rates unexpectedly in August, gold miners act as volatility shock absorbers.
What About Crypto?
Bitcoin’s 30-day correlation with Nasdaq hit 0.82 in August—so it’s not the hedge some think. (Psst: BTCC’s new users get $50 free to test this theory.)
