For advisors assessing global capital flows, the so-called “Sell America” trade appears to have been more a short-lived spasm than a sustained shift. Earlier this year, bearish sentiment toward U.S. assets spiked, fueled by credit concerns and political noise.
According to Apollo Global Management chief economist Torsten Sløk, the exodus from Treasurys and equities proved fleeting—and international demand for U.S. markets is once again firm.
The height of the “Sell America” narrative came in April and May. The backdrop included President Trump’s controversial “Liberation Day” announcement and a Moody’s downgrade of U.S. credit. Foreign investors reacted sharply, dumping U.S. government debt and sending the 30-year Treasury yield surging above 5%. Equities, already under pressure from macro uncertainty, saw major indexes retreat in tandem. For a moment, it looked as though international capital was pulling back decisively.
Sløk argues that the market stress was temporary, not structural. In a weekend note to clients, he identified two clear signs that foreign appetite for U.S. assets has rebounded. First, Treasury markets have stabilized, with renewed buying from overseas investors helping yields retreat from their highs. Second, global equity allocations are once again flowing toward U.S. stocks, reflecting continued confidence in American corporate earnings and the depth of domestic capital markets.
For RIAs, the message is important: despite short-term volatility and headline-driven selloffs, U.S. assets remain a cornerstone for global investors. The episode serves as a reminder that international flows are sensitive to political and credit signals but ultimately anchored by the U.S. market’s unique combination of scale, liquidity, and innovation.
That resilience matters when structuring client portfolios. While diversification across regions and asset classes is prudent, abandoning U.S. exposure in response to temporary sentiment swings risks missing the market’s longer-term advantages. The U.S. remains the world’s deepest pool of investable assets, offering unparalleled access to growth companies, stable fixed income instruments, and a regulatory environment still viewed as more reliable than most alternatives.
Advisors should also note that bouts of foreign selling can create opportunities. When Treasury yields spike due to sentiment-driven moves rather than fundamentals, long-term investors may be able to capture attractive entry points. Similarly, equity selloffs tied to political theatrics often reverse once underlying economic and earnings trends reassert themselves.
Sløk’s analysis underscores a broader point: the “Sell America” trade was never about structural decline in U.S. competitiveness. Instead, it reflected episodic concerns amplified by headline risk. The subsequent reversal shows that international investors remain committed to U.S. markets, even as they diversify globally.
For wealth advisors guiding clients through volatile environments, the lesson is to keep perspective. Global capital may move in and out of U.S. assets in response to ratings actions or political events, but the underlying demand for American markets endures. The brief flare-up of the “Sell America” trade only reinforces the long-term case for maintaining disciplined, diversified exposure to U.S. equities and bonds within client portfolios.
