Foreign investors withdrew $63 billion from US stocks – Goldman

According to analysts at Goldman Sachs (NYSE: GS), since the beginning of March, foreign investors have sold American stocks worth $63 billion. Data on high-frequency fund flows show that the sales were initiated by European investors, while other regions continued to buy American stocks.

"This dynamic poses a significant risk to stock valuations, as foreign investors entered 2025 with a record share of ownership of US stocks at 18%,” said a note to clients from the portfolio strategy group led by Daniel Chavez.

Since 1980, there have been 10 other instances of large sales of stocks by foreign investors. On average, during these sales, 0.6% of the total market value of the US was sold, which is equivalent to approximately $300 billion today.

Goldman claims that the latest episode of overseas sales was shorter and less intense than the average over the past few decades. In the past, American stocks could withstand outflows of foreign investment, but in 7 out of 10 cases, they rose, with the exceptions being 1987, 1990, and 2022.#TrumpVsPowell