‘Exodus’ of US assets set to intensify, says strategist

GLOBAL investors are rotating out of US assets not because of uncertainty over tariffs, says strategist Marko Papic of BCA Research, but because non-US assets are more attractive, particularly as the US dollar is expected to weaken over time.

Papic wrote in a recent note: “The big picture is that the market narrative of US exceptionalism is dead. So, it doesn’t really matter what happens with the trade war. President Trump has catalysed what was always going to happen, which is the rotation of capital away from extremely expensive US.”

He maintains that the market story of 2025 is that “global investors are using the catalyst and news flow of the trade war to lighten their exposure to US assets”. “The trade war noise is providing cover for an absolute exodus out of the US.”