The Giant Sucking Sound: Global Movement Out of U.S. Large Caps

by: TickerSense

Ross Perot used to talk of a giant sucking sound that resulted from US jobs going abroad. Today, that giant sucking sound is evident in the capital flows from large cap US stocks to international markets. Over the last several quarters US stocks have been well represented on the list of largest individual losers in our calculations of quarterly and yearly world equity market impacts. In our 2005 yearly impact, we noted that nine of the ten stocks which lost the most in terms of market value were US companies (VZ, DELL, PFE, IBM, WMT, FNM, EBAY, GE, AND TYC).

In the first quarter of this year the trend continued as seven out of ten stocks on the list were from the US. Collectively, these seven stocks accounted for a decline of $90 billion in market cap, decreasing US equity returns by 14%: