Wall Street Faces New Risk as European Buyers Consider Scaling Back U.S. Assets

Money managers in London, Berlin and Madrid say clients are asking about reducing exposure to U.S. assets amid repeated political tensions, and analysts warn that accelerated diversification could, over time, put pressure on U.S. equities, bonds and the dollar.

European investors are asking questions about U.S. holdings as political tensions continue. Money managers in London, Berlin and Madrid report increased client inquiries about ways to lighten up on U.S. assets. Analysts say that if diversification accelerates, it could weigh on U.S. equities, bonds and the dollar over time. Key facts: - Money managers across major European financial centers are fielding more client inquiries about reducing U.S. asset exposure. - Those inquiries have been reported as linked to repeated threats and insults from Donald Trump. - It is reported to be highly improbable that European governments would act in concert to ditch U.S. assets. - Analysts note the main pressure on Wall Street is not expected to come primarily from government action. Summary: The reported rise in client interest reflects concern among some investors about political rhetoric and could influence asset flows if diversification trends accelerate. Undetermined at this time.