Troubling Trend

There is troubling trend in the global markets towards US investments. Last week the Associated Press reports that "Foreign demand for the Long Term U.S. finanaical assets dropped by the largest amount in four months in May, as Japan and Russia trimmed their holdings of Treasury securities. Foreigners actually sold $19.8 Billion more long-term U.S. securities than they purchased in May, compare the net purchases of $11.5 Billion in April.
This is definitely a serious trend with such a drop in foreign investible funds for meeting the U.S. borrowing needs. The FED has definitely seen the danger and that was the reason they went into the market to buy these securities in an attempt to bring back some confidence in the international market towards U.S. securities.
My thesis of this selling is China's selling of U.S. assets to fund their stimulus and growth agenda to be at the forefront when the global economy start to return to growth.
It is funny how the pundits in the media are saying buy stocks BUT yet they saying growth will take awhile to return. I think they know what is happening they see the cash rich nation slowing and in some cases like China dumping treasuries on the market which have them very nervous.