Continued Weakness in US Capital Flows – The latest TIC data, published last week, once again highlighted the striking discrepancy between the generally USD-bullish consensus in the FX market and the balance of payments reality. In November, almost US$30bn-worth of net portfolio investment left the US. In particular, the equity component, potentially the most growth-sensitive of the portfolio assets, remains stuck in outflow territory. Over the past 12 months, more than US$13bn on average has left the US in terms of net equity flows – most of this as a result of US investors pursuing investment abroad...We continue ... (full story)