At the start of 2026, a striking shift is underway in global financial markets. Trading strategies that for years assumed the unchallenged primacy of the United States are being reconsidered. The new approach gaining traction among investors is bluntly summarized in three words: Sell America.
This pivot reflects growing unease with U.S. assets, as evidenced by a weakening dollar, a stalling stock market, and rising government borrowing costs. While few investors are abandoning the United States outright, many are increasingly hedging their exposure and redirecting new capital elsewhere.
From Shock Tariffs to Structural Doubts
The roots of the “Sell America” trade trace back to April 2025, when the shock of sweeping, high tariffs sent both stocks and bonds into turmoil. That episode planted the seeds of doubt, but sentiment has accelerated more recently amid fresh investor concerns over the Trump administration’s economic agenda.
Attacks on the independence of the Federal Reserve, combined with renewed threats of a trade war with Europe, have unsettled markets that had grown accustomed to policy predictability. These concerns were a recurring theme at New York Life Investments’ global investment meeting earlier this month.
“Our European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S.,”
said Lauren Goodwin, an economist at the firm.
Diversification, Not an Exit
Market participants emphasize that the shift is not a wholesale flight from the United States. Instead, it reflects a reassessment of risk and return after more than a decade of U.S. dominance.
The strategy is largely about reducing concentration risk, hedging currency exposure, and deciding where incremental investment should go. Yet even this measured repositioning has had visible consequences across markets.
A Sliding Dollar and Surging Safe Havens
Over the past month, the sell-America dynamic has pushed the dollar lower, dampened equity momentum, and raised borrowing costs for the U.S. government. Precious metals have been among the biggest beneficiaries.
Although the nomination of Kevin Warsh as the next Federal Reserve chair and a last-minute deal to fund most of the government briefly supported the dollar, the currency still ended the month down 1.2 percent against a basket of major peers. Over the past 12 months, the dollar has fallen roughly 10 percent—a steep decline for a currency long regarded as the world’s anchor.
Gold and silver, traditional havens in periods of uncertainty, have surged to record highs. Even after a late-month pullback, gold remains about 75 percent higher than a year ago, while silver has also posted double-digit gains.
U.S. Stocks Lose Their Dual Advantage
After years of relentless gains, the U.S. stock market has plateaued since the start of the year. For international investors, the shift has been particularly painful, as the falling dollar has eroded returns.
“It’s been almost a paradigm shift in the dollar,”
said Adam Turnquist, chief technical strategist at LPL Financial.
“U.S. equities were working as the dollar moved higher. That’s unraveled.”
Measured in foreign currencies, U.S. stocks have begun to slide, weakening one of their most powerful attractions: strong performance paired with currency appreciation.
Conflicting Signals From Washington
President Trump has openly welcomed the weaker dollar, arguing that it makes U.S. exports more competitive. Those remarks alarmed investors accustomed to a longstanding policy of supporting dollar strength.
Treasury Secretary Scott Bessent moved quickly to reassure markets, insisting that the government still favors a strong dollar and that the era of U.S. exceptionalism remains intact.
“If we have sound policies, the money will flow in,”
he said.
The conflicting messages have done little to calm investors already frustrated by erratic policymaking.
“I’m not trying to be political. It’s just incredibly frustrating,”
Ms. Goodwin said.
“Key aspects of this administration’s economic agenda conflict with each other.”
Rising Yields and the Cost of Uncertainty
Despite rhetoric about easing affordability pressures, analysts argue that tariffs and unchecked government spending have worsened financial conditions. The 10-year U.S. Treasury yield has climbed to around 4.25 percent, up from under 4 percent in October—effectively the equivalent of a Federal Reserve rate hike.
While some of the increase reflects spillovers from turmoil in Japanese bond markets, investors say political risk has clearly added to the pressure.
“You might like a weaker dollar, but you don’t like higher interest rates,”
said Steve Englander, a currency strategist at Standard Chartered.
“And if it shows up as weaker demand for U.S. equities, that’s also not a good thing.”
The Weight of U.S. Dominance Becomes a Risk
Over the past decade, U.S. equities dramatically outperformed global peers. A dollar invested in the S&P 500 would have quadrupled, while European stocks delivered roughly half that return.
As a result, U.S. stocks now account for about 70 percent of the MSCI All World index, up from around 50 percent ten years ago. That concentration has left global investors heavily dependent on Wall Street’s fortunes—an exposure some are now questioning, especially with valuations elevated and artificial intelligence-driven optimism still largely unproven.
Currency Effects Favor Europe and Beyond
The dollar’s weakness has further tilted the balance. Over the past year, Europe’s Stoxx 600 index has gained nearly 30 percent in dollar terms—about twice the return of the S&P 500. Much of that outperformance reflects currency effects rather than superior local-market gains, but for investors, the distinction matters little.
The falling dollar has also made foreign equities more attractive to U.S.-based investors, reinforcing capital flows away from American markets.
Central Banks Reassess U.S. Assets
Earlier versions of the sell-America trade were largely confined to central banks seeking to reduce dependence on the U.S. financial system after Washington seized Russian dollar assets following the invasion of Ukraine.
Those actions triggered a broader reassessment of the safety of sovereign reserves.
“The safety of U.S. assets started to get reassessed,”
said Ryan McIntyre, president of Sprott Inc.
China’s holdings of U.S. Treasuries have fallen steadily for nearly a decade, dropping from about $1.1 trillion in early 2021 to under $700 billion late last year. Brazil and India have also sharply reduced their Treasury exposure.
Gold, Not Another Currency, Takes the Lead
Selling Treasuries reduces the need to hold dollars, weakening the currency further. Yet no single fiat currency has emerged as the clear alternative. Instead, much of the capital has flowed into gold and other precious metals.
Central bank gold purchases roughly doubled after the seizure of Russian assets and accelerated again late last year, according to the World Gold Council. Private investors have followed suit, pouring money into gold-backed exchange-traded funds as they seek havens beyond U.S. markets.
A Reassessment of Risk, Not a Panic
For many investors, the shift reflects something deeper than short-term market positioning.
“The world looks to the U.S. as a beacon of democracy and rule of law, and I think that is starting to change a little bit,”
Mr. McIntyre said.
“This is not about risk-seeking. It’s about diversification and the reassessment of risk.”
In that sense, the “Sell America” trade is less a vote against the United States than a signal that its long-assumed financial and institutional dominance is no longer taken for granted.
