Quarter of Dutch investors ditching American shares over Trump, U.S. policy: Rabobank

Dutch investors are increasingly mistrustful of the United States under Donald Trump. Two-thirds of Dutch people who invest in American companies’ shares won’t increase those investments, and a quarter have even reduced their American investments in the past six months, according to research by Rabobank’s economic office, RaboResearch.

Dutch Investors frequently mention Trump and American policy as the reasons why they are more negative about investing in the U.S. Words like “uncertainty,” “unpredictability,” “unreliable,” and “fickle” often came up, according to the bank.

They refer to the global trade war started by Trump, his threats to withdraw from NATO, his televised row with Ukrainian President Volodymyr Zelenskyy in the White House, and his wish to make Canada and Greenland American states.

Investors suffered huge losses in early April when the stock exchanges crashed worldwide after Trump announced global import duties. The prices of American companies, in particular, fell sharply. The stock markets recovered within a few weeks, but continue to fluctuate with each new statement from Trump. The American president is also threatening to impose an additional tax on foreign investors.

All this has left a bad taste in many Dutch investors’ mouths, Mary Pieterse-Bloem, head of investment strategy at Rabobank, told NOS. “A growing group of clients specifically ask for investment funds or baskets of stocks or bonds from all over the world, except the U.S. Although this is still a minority, it is a striking shift.”

At the same time, 40 percent of Dutch investors are feeling more positive about investing in Europe. A quarter of investors said that they’ve increased their investments in European companies’ shares. Words like “stability,” “independence,” “solidarity,” “own-region,” and “strengthening the defense industry” often came up when talking about investing in the European market.

Pieterse-Bloem told NOS that Rabobank itself is also investing less in the U.S. and more in Europe. According ot her, investing too much money in one market is unwise. “From a geopolitical perspective, it is understandable, but as an investor, you want ot ensure that return and risk remain in balance.”