The Foreign Buyers Turn Off the Tap...

The money isn't coming from Asia. That removes some shock protection during our next surprise.

Asian retail investors have long been reliable buyers of U.S. equities…

But they stopped gobbling up U.S. stocks recently, just as the S&P 500 stalls, writes Bloomberg.

Reuters data shows that U.S. equity funds experienced another $7.4 billion in outflows for the week ending June 4. This was the third consecutive week of outflows, with Asian traders driving much of the exit. Europe… saw gains (as I’ve said, the militarization and financialization of this region will fuel their equity markets.)

So… this is something to monitor. JPMorgan said that dip-buying by retail investors has historically supported U.S. markets during corrections.

Now, Asian demand is falling. This is a cushion that would put future rallies at risk.

Asian retail flows have become a significant liquidity source at a time when the U.S. comprises a large share of the Global MSCI Index. The pullback by these buyers doesn't just reduce capital inflows—it weakens global market depth.

It can make U.S. markets more vulnerable.