Reasons to worry about America’s investment position with the rest of the world
Data shows that our global financial system is plagued with serious but often ignored imbalances
IS THE world running away from American assets? That is a question numerous commentators have asked after US President Donald Trump unleashed trade tariffs in 2025 – and attacked erstwhile allies and foes alike.
And some hints of unease have recently emerged: a new survey by Bank of America suggests that investor sentiment towards the US dollar is souring; a Danish pension fund is shying away from Treasuries; and some investors are shifting to non-US and non-tech equities because there is such a high concentration – and exuberance – around tech in US indices.
But this week, new data has emerged that offers an important cautionary note: the US Treasury reported that overseas investors bought a net US$1.55 trillion of long-term US financial assets in 2025, up – yes, up – from a net US$1.18 trillion in 2024. Of this, US$442.7 billion were Treasury notes and bonds, and US$658.5 billion equities.
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