The biggest banks are moving their headquarters out of the country, and in many cases the U.S. government is also moving its own assets.
The Financial Services Forum said Tuesday that the move, along with a wave of capital flight, is contributing to a global capital outflow of $1 trillion.
Some of the big banks are also shifting to offshore financial centers, with Goldman Sachs and JPMorgan Chase saying they will take advantage of tax loopholes to relocate their operations.
More than $500 billion of U.N. funds are set to be spent on helping the world recover from the crisis, and many of those assets could be used to bolster the global economy, according to a report in The Financial Times.
But some experts say the biggest asset shift in the coming years could be to asset classes that are more vulnerable to a future recession.
“There are two key categories of assets that are in the best position to be hit by a recession: high-risk assets and low-risk asset classes,” said Steven Kaplan, the chief economist at Fidelity Investments.
Low-risk categories include securities like bonds, which are seen as safe for the long-term.
But for most investors, bonds are more risky than the assets in high-cost asset classes like corporate bonds.
Investors are also worried about the potential for contagion.
Many high-profile investors have been sold stocks or other assets.
And they are not alone.
The average age of U-S-born people in the world is nearing 50.
Banks have also begun to diversify their portfolio and to reduce risk.
Capital One, which has more than 100,000 employees, said in its most recent quarterly earnings report that it is reducing the size of its business and is reducing its dividend.
In May, Bank of America Corp. said it would eliminate nearly 1,000 positions from its U.K. and U.A.E. operations, including its UBS unit, while the company has also trimmed its workforce.
And JPMorgan Chase & Co. said last month it would move to an asset-allocation strategy that would limit exposure to certain sectors of the U,S.
economy and reduce exposure to the mortgage market.
Other large U.L.O. banks have also started to reduce their exposure to U. S. debt.
Citigroup Inc., the world’s largest bank by assets, announced last month that it will sell its U-P bond portfolio to a private-equity firm.
U.S.-based banks like Goldman Sachs Group Inc. and Bank of New York Mellon Corp. have also cut back on U.s. government exposure, reducing the amount of money the government has to lend to U-sources.