The biggest US investors are trimming US stocks. Here's where it's going.

• Large US investors are increasing cash holdings (ranked 5th for net intentions) and reducing overall risk, with 43% having reduced their risk profile in the past year.
• Inflation is the highest-ranked short-term risk, leading to increased flows into inflation-sensitive assets like private infrastructure, inflation-linked bonds, and commodities.
• Investors are paring back US equities, taking profits, and reallocating to emerging and international equities for global diversification, with emerging markets (EEM) up 25% YTD.
• AI and technology are seen as the number one long-term investment opportunity (cited by 85% of respondents), with private infrastructure also a key focus, while private equity sees lower interest due to valuation and distribution concerns.

Large US investors are pivoting to cash and inflation-sensitive assets, while also increasing exposure to emerging and international equities. This shift reflects short-term concerns about inflation and geopolitical risks, alongside a long-term focus on AI and infrastructure for growth and diversification.