INSUBCONTINENT EXCLUSIVE:
Goldman Sachs recently reported that foreign investors sold $63 billion in U.S
equities since March 2025
This figure, while notable, represents a small share of the $18 trillion foreigners hold in American stocks.The real story behind the
numbers reveals a more complex market dynamic than a simple foreign exodus
dollar also weakened, nearing a one-year low
These shifts led some to question whether foreign investors are losing faith in U.S
However, hard data tells a different story.Treasury International Capital data showed net foreign private inflows of $166 billion in
February, with foreigners increasing their holdings of U.S
securities.Hedge Funds, Not Foreign Investors, Drive U.S
(Photo Internet reproduction)Goldman Sachs still forecasts $300 billion in net foreign purchases of U.S
equities for 2025, only slightly below last year
Foreign investors now own 18% of U.S
equities, a record high.Foreign Investment Dynamics in the U.S
Amid Market TurmoilJPMorgan and the Institute of International Finance both found little evidence of mass foreign selling
year.These funds unwound large positions after the S&P 500 peaked in February, causing a sharp correction
Foreign investors, meanwhile, continued to buy U.S
stock ETFs, even as some shifted allocations in response to political and economic uncertainty.Bond markets also saw turbulence
Foreigners sold more Treasurys in April as trade tensions rose, but the scale remained modest compared to total holdings
Foreign investors still hold about 30% of U.S
Treasurys and corporate debt.The U.S
American companies post higher returns on investment than global peers, and U.S
assets remain attractive due to their liquidity and scale.While the recent outflows reflect caution amid trade and policy shifts, they do
not signal a structural retreat
The 2025 turbulence stands out for its speed, but not its size.Past episodes of foreign selling were larger and often followed by market
For now, the data points to a market recalibration, not a crisis.
