Investors shift from U.S. to Europe and emerging markets amid valuation and policy concerns
Canada ranks fifth globally for investment-related search activity, with notable demand in stocks and crypto, according to a new analysis report.
Canadians averaged 14,566 monthly investment-related searches per 1 million residents, led by 5,702 stock-related queries and 5,044 for crypto.
As per the BrokerChooser report, 27 percent of Canadians say they are willing to take on more investment risk to reach financial goals during continued economic uncertainty.
The search data coincides with a broader global shift in investor behaviour away from US markets.
As reported by Reuters, equity mutual funds and exchange-traded funds (ETFs) based in the US saw outflows of US$24.7bn in May 2025—the largest in a year.
By contrast, European funds attracted US$21bn in the same month, pushing year-to-date inflows to US$82.5bn, the highest in four years.
LSEG Lipper data also showed that 292 emerging market equity ETFs pulled in US$3.6bn in May.
According to Morningstar’s Michael Field, what began as a valuation-based reallocation has become a sentiment-driven shift, with investors increasingly “rattled by the US administration’s actions” and looking to Europe for opportunities.
The MSCI Europe index rose about 20 percent so far in 2025, compared to just 2.7 percent for the MSCI United States.
Investors are also responding to weakening US Treasury bond appeal and the dollar’s decline, according to Reuters.
BrokerChooser’s analysis of global Google search data ranked Australia as the most investment-curious country, recording 29,359 monthly investment-related searches per 1 million people.
Australian interest was highest in stocks (17,654) and crypto (6,691), with 79 percent of Australians expressing market optimism by late 2024.
Singapore followed in second place with 22,527 searches, led by crypto, forex and general investing terms.
Kenya, which showed the strongest global interest in forex, ranked third, while New Zealand took fourth place.
BrokerChooser also noted that New Zealanders had US$67.1bn invested in Wall Street as of March 2025—double the value from five years earlier.
Investor sentiment shifts are also playing out on an individual level.
As reported by The Wall Street Journal, Keith Moffat, a Canadian-born investor living in the Netherlands, moved out of US stocks entirely, citing overvaluation and political concerns.
Similar motivations were cited by Peter Stern, an American in Germany, who began reallocating from US bonds to European assets due to concerns about policy-driven capital access issues.
Lia Holmgren, a Slovak-born trader based in Miami, said she redirected short-term assets to European defence companies, commenting that while “everyone invests in US stocks,” their current valuations raise questions about future returns.
Data from Morningstar cited by the Journal showed that US-based ETFs focused on European equities saw net inflows of over US$2bn in the first two months of 2025—a reversal from US$8.5bn in outflows during the latter half of 2024.
Meanwhile, the S&P 500 lost 3.6 percent year-to-date, compared to an 8.3 percent gain in the Europe Stoxx 600.
Market valuation metrics further illustrate the divergence: The price-to-earnings ratio of the S&P 500 stands at 24.6, versus 18.7 for the Stoxx Europe 600 and less than 13 for the Hang Seng Index, according to Dow Jones Market Data.
As per BrokerChooser’s Adam Nasli, new investors often hesitate due to “fear of making the wrong decision” and lack of knowledge.
He noted that with proper resources and guidance, individuals can learn foundational strategies like risk management and diversification, and that rising global curiosity signals a growing readiness to act.
