When you invest, you have two choices: You can invest HERE (where you are) or THERE (where you aren’t.) And right now, a lot of money is leaving HERE and flowing THERE.

Check out this MoneyShow Chart of the Day. It shows stock ETF money flow data for three different destinations – Europe, Emerging Markets, and the US.

Source: LSEG Lipper

You can see that the yellow line – tracking US flows – is falling…while the red line – tracking European flows – is rising notably. The blue line – tracking EM flows – is climbing more modestly.

The numbers for May alone break down like this:

-$24.7 billion (US)

+$3.6 billion (EM)

+$21 billion (Europe)

Those US outflows were the largest in a year. As for Europe? Not only were May inflows strong, but year-to-date flows totaled $82.5 billion through last month. That’s the most in FOUR years.

What’s going on? President Trump’s trade and tariff policies are prompting some investors to reallocate money out of the US and in to other markets. The US dollar is declining, driving other investors to invest in countries with stronger currencies.

Plus, the relative outlook for economic growth and interest rates is shifting – with expectations for US growth dimming vis-à-vis other countries and regions. See what Steve Schwarzman of Blackstone Inc. (BX) said about investing in Europe, for instance.

As a trader, what do you do? Go where the money is going, right? Meaning European or EM funds. You can also consider investments that do well in a declining-dollar environment.

At some point, momentum will shift and money will flow somewhere else. But right now, it’s not going HERE. It’s going THERE.

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