Article: Market Plunge Cooled Foreign Investment

Foreign investors, who helped propel the long bull market in U.S. stocks, began dumping their shares when the market plunged on Oct. 19 and continued to sell more shares than they bought for the rest of the year, according to the Securities Industry Association.

In the final three months of 1987, foreigners were net sellers of $7.8 billion worth of U.S. equities, marking the first such shift in three years.

In November alone, foreign investors were net sellers of $6.7 billion of stocks. That was a dramatic reversal of earlier trading patterns; until October, foreigners had been net buyers of an average of $2.6 billion of shares a month.

Foreign investment in U.S. equities, especially ...

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