The “Sell America” Trend: Why Investors Are Shifting Away From U.S. Assets
A growing number of global fund managers are enacting a strategy dubbed “Sell America,” reducing their exposure to U.S. Assets. This shift, observed in February 2026, signals a notable change in investor sentiment towards the United States, with funds increasingly favoring Europe and emerging markets. The trend encompasses selling U.S. Dollars, U.S. Equities, and U.S. Government bonds.
What’s Driving the “Sell America” Movement?
Several factors are contributing to this trend. Political interference in the Federal Reserve, ongoing tariff policies, and concerns about U.S. Debt levels are all weighing on investor confidence. The potential for unwelcome American annexation of Greenland has also added to geopolitical uncertainty. High valuations in the U.S. Stock market are further fueling the move away from American investments.
Despite overall market optimism – with sentiment being the most bullish since June 2021 – investors are broadly discounting the United States as an investment destination. This is a descriptive trend, not a coordinated strategy, but rather a collective reassessment of U.S. Risk.
Where Are Investors Moving Their Money?
The Eurozone is emerging as a primary beneficiary of the “Sell America” trend, experiencing the largest increase in asset allocation. Emerging markets are also gaining traction, receiving similar attention to the Eurozone. Investors are also increasing their holdings in gold, which is seen as a safe haven asset during times of economic and political uncertainty.
The euro itself is experiencing significant gains, with fund managers increasing their holdings to record levels – a 23% net overweight position as of February 2026, the highest since Bank of America began tracking this data in 2004.
The Impact of Potential Leadership Changes
The potential nomination of Kevin Warsh to lead the Federal Reserve is also influencing investor behavior. Concerns that Warsh’s policies could negatively impact U.S. Bonds are contributing to the decline in demand for American debt. Specifically, 38% of surveyed fund managers anticipate losses in U.S. Bonds if Warsh takes the helm, with a potential decline in the dollar’s value as well.
Political Expectations and Global Growth
Expectations surrounding the U.S. Elections are also playing a role. A significant 82% of fund managers believe the Republican Party will lose control of Congress in November, which could limit the administration’s ability to implement its policies.
Interestingly, despite these concerns about the U.S., global growth expectations remain positive. 39% of fund managers anticipate stronger global GDP growth over the next 12 months, marking the most optimistic outlook since mid-2022.
Risks on the Horizon
While the U.S. Is facing headwinds, investors are also monitoring other potential risks. The possibility of a bubble in artificial intelligence is currently the top concern, followed by a resurgence of inflation and a disorderly sell-off in bonds.
Gold’s Continued Appeal
Gold is expected to continue its upward trajectory, with most fund managers believing it has not yet reached its peak in this cycle. The average expectation is for gold to reach $6,200 per ounce, a 26.9% increase from its current level. This surge in gold’s appeal is directly linked to the growing distrust in U.S. Assets and fiat currencies.
Did you know?
The “Sell America” trend first emerged in April 2025 following threats of tariffs, highlighting the sensitivity of global markets to U.S. Trade policy.
Frequently Asked Questions
- What is “Sell America”? It’s a trend where investors reduce their exposure to U.S. Assets, including the dollar, stocks, and bonds.
- What’s causing this trend? Political uncertainty, trade policies, U.S. Debt, and high market valuations are key factors.
- Where are investors putting their money instead? Primarily into Europe, emerging markets, and gold.
- Is this a long-term shift? It’s difficult to say, but current indicators suggest it could persist as long as the underlying concerns remain.
Pro Tip: Diversifying your portfolio across different asset classes and geographies can help mitigate risk during periods of market volatility.
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