Article: Foreign Investors Gave Cold Shoulder To U.S. Stocks During First Quarter

Foreign investors, who dumped U.S. stocks after the October market collapse, moved to the sidelines during the first three months of this year, where they have been watching and waiting-but not investing.

The recent slowdown has been in marked contrast to the feverish activity during the final quarter of 1987, when panicky foreign investors were net sellers of $7.2 billion in U.S. equities. After the markets settled down, foreign investors were no longer selling much. But they weren't buying much, either.

"People are loath to do anything," said Peter Pejacsevich, senior vice president of Bessemer Trust Co. in London. Foreign investors, he said, were worried about whether U.S. inflation ...

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