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
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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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