Australian investors have capitalised on the exodus from Wall Street last month by snapping up beaten-down US stocks – a brave bet that paid off after a historic run for the S&P 500 Index at the start of the month.
Exchange-traded fund provider Global X said its US 100 ETF which tracks Wall Street’s largest companies, skewing it towards the technology sector, boasted a record month in April after attracting $26 million in net flows.
That is despite the US sharemarket plunging nearly 15 per cent after President Donald Trump shocked the market on April 2 with sweeping tariffs that triggered an exodus from US assets and brought into question the stability of the world’s largest economy.
But signs of improving relations between the US and China and robust corporate earnings sent the S&P 500 on a nine-day winning streak – the longest stretch of gains in two decades – and pushed the sharemarket back above the level it traded at just before Trump’s tariff spree.
“While some global investors are pulling back from the US, Australian investors appear to be taking the opposite view, buying the dip amid volatility and uncertainty,” Global X investment strategist Marc Jocum told The Australian Financial Review.
Source: https://www.afr.com/markets/equity-markets/aussie-investors-rake-it-in-after-buying-the-dip-on-wall-street-20250505-p5lwrt