From Yahoo Finance: 2025-04-28 06:11:00

In the first 100 days of the Trump administration, market volatility has led some investors to move away from American assets, fearing potential damage from trade policies. While recent trade optimism has caused rallies, the S&P 500 has still fallen about 8% and the dollar index about 9%. Concerns persist about the long-term impact on U.S. markets and the economy.

Some strategists suggest a trend of reallocating from U.S. assets is in motion, with investors seeking alternative reserve currencies. Foreign central banks have decreased U.S. dollar holdings in global FX reserves to 57.80%, down from 66% a decade ago. Concerns about Treasury market selloffs and diversification from the dollar persist, with some investors increasing allocations to gold and reducing exposure to U.S. assets.

Market moves show a broader shift away from the U.S., with portfolio rebalancing expected to continue throughout the year. High-net-worth individuals are increasingly diversifying financial assets beyond the U.S. Goldman Sachs estimates foreign investors have sold $60 billion of U.S. stocks since March, driven by European investors. However, the sheer size and liquidity of U.S. markets and the economy may continue to curb the appeal of alternative investment destinations.



Read more at Yahoo Finance: Analysis-After 100 days under Trump, investors reassess the allure of ‘brand USA’