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Foreign investors dumped $63B in U.S. equities, Goldman says - BLOOMBERG
Foreign investors have sold $63 billion of U.S. equities since the start of March, Goldman Sachs strategists estimate, noting that the data from high-frequency fund flows suggest that European investors have been driving the selling, while other regions have continued to buy U.S. stocks.
“This dynamic poses a substantial risk to equity valuations because foreign investors entered 2025 with a record 18% ownership share of U.S. equities,” the portfolio strategy team lead by Daniel Chavez writes in a note to clients.
They note that since 1980, there have been 10 other instances of substantial foreign investor selling, that on average saw 0.6 per cent of total U.S. market value being sold, or the equivalent to about $300 billion today.
Goldman says that the most recent episode of foreign selling “has been shorter and shallower than the average experience during the last few decades.” In the past, U.S. stocks were able to withstand foreign outflows, rising during seven out of 10 occasions with 1987, 1990 and 2022 being the exceptions.
