The Giant Sucking Sound: Global Movement Out of U.S. Large Caps (MSFT, GE, AIG, QCOM, UNH, EBAY)

At the end of last quarter we highlighted how, over the last several quarters, US equities have been well represented on the list of stocks which have lost the most value in terms of market capitalization. The trend continued again during the second quarter as six of the top ten ‘losers’ were from the US.

Collectively, MSFT, GE, AIG, QCOM, UNH, EBAY accounted for over 8.4% ($123 bln) of the entire global decline during the quarter. While many argued that they would likely offer some degree of safety during a sell-off, the events of the second quarter illustrate that even during times of global market weakness, investors continue to diversify out of large cap US stocks (click to enlarge):