Dutch investors shying away from American businesses due to U.S.-Europe tensions

Nearly a third (27 percent) of Dutch private investors are investing less in the United States due to recent tensions between the U.S. and Europe, ING reported after surveying investors. The geopolitical tensions have Dutch investors looking more keenly at investments in Europe, the bank found.

47 percent of investors said they were increasingly opting for European products or services, and a similar group is considering including more European companies in their portfolios.

“The tensions between the U.S. and Europe are giving investors pause for thought,” Bob Homan of the ING investment office said. He called the shying away from U.S. companies a rational response to the more volatile international climate. “Investors are looking for more stability, and they’re more likely to find it in European markets.”

The bank noted that Dutch investors aren’t dumping their American investments en masse, but the reluctance toward the United States is also visible outside the investment portfolio. 49 percent are buying fewer or no American products, or are booking fewer or no vacations to the U.S.

ING called it “striking” that the geopolitical unrest does not seem to be undermining investor confidence. Investors are remaining “remarkably steadfast,” despite considering the geopolitical situation to be the biggest influence on the stock market.

“The stability in sentiment is truly remarkable,” Homan said. “Global politics is chafing, AI is causing unrest, but investors continue to look ahead. They are mindful of risks, but at the same time, they continue to seek opportunities. We call that cautious optimism.”

ING thinks the economic expectations will remain largely stable in the coming months. Investors are also increasingly interested in sustainable investment, which looks not only at financial gain, but also at the investments’ positive impact on people, the environment, and society. Wind and solar energy companies are doing particularly well. According to ING, that’s partly driven by artificial intelligence, which requires a lot of energy for its data centers.