Global investors are in 'sell America' mode even with US market dominance intact, JPMorgan survey says
The "sell America" trade has picked up steam amid policy, tariffs, and deficit fears.
"Sell America" sentiment is growing among international investors, even as Wall Street forecasters see US markets bound to push past the worst-case scenarios.
Investors from 45 countries surveyed at the JPMorgan Global Markets Conference this month revealed a bullish lean toward Europe, with 36% anticipating European equities to be the best-performing asset in 2025.
That's compared to 17% who are betting on US stocks to dominate.
"There were mixed views on the outlook for the US economy, even if recession is no longer the base case, and investor sentiment was not as positive on growth as risk market trading suggests," a team of JPMorgan analysts wrote last week.
The report, involving 700 investors from 45 countries, adds to other signs indicating that global investors have turned cautious on US markets after years of outperformance.
While US equities have drawn heavy foreign investor flows as the market rallied in the last few years, high valuations, AI disruptions, and massive policy and data jitters have shaken faith in "US exceptionalism."
Meanwhile, new tailwinds are emerging for the European market, and investors have flocked to the region's stock market. The Stoxx Europe 600 is up 7% for the year, while the S&P 500 is down about 1%.
However, though the stark difference in performance between the two markets may boost pro-European arguments, several Wall Street forecasters have cautioned against dumping US assets.
Morgan Stanley recently projected that American dominance will remain intact through at least 2026, as near-term volatility gives way to improved earnings sentiment, continued AI gains, and accommodating policy boosts. In its view, slowing growth will not trigger a recession.
Goldman Sachs, meanwhile, suggested that US mega-caps will outperform again this year — the so-called Magnificent Seven stocks have been the S&P 500's main growth engine since 2023, and are trading at discounted valuations that investors will lean into, the bank said.
For now, uncertain will remain until the market gets more clarity on everything from interest rates, recession odds, trade deals, and geopolitical developments. JPMorgan offered some takeaways from the conference on key issues:
Recession: Odds of a US downturn now stand at 40%, but GDP damage is already done. Conference speakers cited that US tariffs will dent business investment and consumption. JPMorgan expects the 10-year Treasury yield to end 2025 at 4.35%.
Trade negotiations mean more uncertainty: Easing tensions with China may have uplifted US investors' spirits, but a deal with the European Union looks contentious, JPMorgan said. Risk of retaliation is high if negotiations don't conclude favorably. That risk was amplified on Friday when Trump posted on Truth Social that he was recommending a 50% tariff on the EU starting June 1.
Expect a longer bond sell-off: Foreign dumping of US debt should continue as inflation, attacks against central bank independence, and policy turmoil erode the Treasury market's safe haven appeal.
As sovereign wealth funds and reserve managers rethink Treasury holdings, gold stands to benefit, JPMorgan said.
"A potential shift of just 0.5% of foreign US assets to gold could yield 18% annual returns, taking gold prices toward $6,000 by early 2029."
Read the original article on Business Insider
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Bloomberg
31 minutes ago
- Bloomberg
Stock Movers: Datadog, FedEx, Synopsys
On this episode of Stock Movers: - Software company Datadog (DDOG) will be added to the S&P 500 index next week, replacing Juniper Networks Inc. after its recent acquisition by Hewlett Packard Enterprise Co. - FedEx (FDX) is double-upgraded to outperform at BNP Paribas Exane, with the broker saying the stock is 'arguably oversold,' expecting the firm's relative operational outperformance vs. rival UPS to continue. UPS is meanwhile upgraded to neutral from underperform. - Synopsys (SNPS) and Cadence Design both gain 6.1% in premarket trading after the US lifted export license requirements for chip design software sales in China, clearing the way for the companies to resume services in the world's second-biggest economy.
Yahoo
32 minutes ago
- Yahoo
Trump: Fed's Powell 'should resign immediately'
President Trump said Jerome Powell 'should resign immediately' in a Truth Social post Wednesday night, increasing a White House pressure campaign on the Federal Reserve chairman that is intensifying this week. Trump started the week with public criticisms of the Fed and Powell for not lowering rates, posting a note he sent to Powell telling the Fed chair "Jerome—You are, as usual, 'Too Late'" and arguing that he has "cost the USA a fortune." His press secretary held up the note at the White House on Monday so reporters could see it. His Treasury Secretary Scott Bessent then in separate TV interviews compared the Fed to an old person who is afraid of falling after having stumbled once and — referring to concerns Powell and other Fed officials have voiced about inflation from Trump's tariffs — said "I guess this tariff derangement syndrome happens even over at the Fed." When Trump used Truth Social Wednesday night to urge Powell's resignation, referring to him again with the nickname 'Too Late,' he linked to a news story that detailed calls made by yet another member of his administration — Federal Housing Finance Agency director Bill Pulte — for Congress to investigate Powell over statements made to Senate lawmakers about renovations to the Fed's headquarters. Pulte has also called on Powell to resign. 'I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed 'for cause,'' Pulte said Wednesday in a post on X. When Powell testified before Senate lawmakers last month, Republican senators asked him about media reports that described the expenses and features of the Fed renovation project in Washington, D.C., and Powell said the reports were 'misleading and inaccurate in many, many respects.' Republican Sen. Cynthia Lummis said in a statement to Yahoo Finance that 'This is the Federal Reserve, not a modern-day Palace of Versailles, and it's clear his inability to set aside his own biases in favor of sound policies proves it's time for new leadership at the Fed,' echoing a statement she also posted on X. 'I am happy President Trump is considering new leadership at the Fed.' There is now a short list of people who could succeed Powell as the next Federal Reserve chair when his term is up next May, according to people close to the administration. They include former Fed governor Kevin Warsh, National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent, former World Bank president David Malpass, and current Fed governor Christopher Waller. Trump told reporters Tuesday that "I have two or three top choices," roughly a week after saying "I know within three or four people who I'm going to pick." Powell has said that his removal from the job before his term is up next May is not permitted by law, and that he intends to serve out the full time. Trump has delivered mixed messages about whether he would try to remove him, saying in an April 17 post that 'Powell's termination cannot come fast enough!' before saying April 22 that he had 'no intention of firing him.' When asked Tuesday during a monetary policy conference in Portugal if Trump's attacks made it more difficult for Powell to do his job, the Fed chairman said, "I'm very focused on just doing my job." He added that "the things that matter are using our tools to achieve the goals that Congress has given us — maximum employment, price stability, financial stability — and that's what we focus on 100%." Powell's response was met with applause from other participants on the panel and the audience in the room. He also said on Tuesday, 'I want to hand over to my successor an economy in good shape. That's what keeps me awake at night.' When asked if he would serve out his term as a Fed governor until 2028, he declined to say: 'I have nothing for you on that today." On Tuesday, Powell didn't rule out an interest rate reduction at the Fed's next meeting on July 28-29, but he noted the central bank would have cut rates by now if not for the tariffs introduced by the Trump administration. "We went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs," he said. The Fed lowered rates by a full percentage point in 2024 but has held rates steady so far in 2025 as it waits to see if inflation will pick up this summer due to the tariffs. "I wouldn't take any meeting off the table or put it directly on the table," Powell said when asked about the possibility of a cut in July. "It's going to depend on how the data evolved." Click here for in-depth analysis of the latest stock market news and events moving stock prices Sign in to access your portfolio


Forbes
33 minutes ago
- Forbes
From ESG To Genuine Impact: A Sustainable Path To Effective Governance
Morten Johansen is the COO of DP World Americas. At first glance, today's focus on environmental, social and governance (ESG) aligns with longstanding business principles. I've found this to be particularly true for supply chains, where ESG considerations run from labor rights to greenhouse gas output. In effect, corporate governance was integrating central elements of ESG well before the term gained popularity. But ESG is more than a metric—it's also a pathway to resilience. In an era of compounding disruptions, I've seen how ESG-driven strategies can not only foster responsible practices but also serve as buffers against volatility. Whether it's supply chain disruptions, regulatory shifts or climate-induced resource scarcity, companies grounded in ESG principles are often better positioned to adapt, recover and thrive. One proof point is found in an annual report from CDP, which determined that corporate liability for supply chain-related environmental risk could cost upward of $120 billion by 2026. Falling behind on this track could result in decreased competitiveness, exacerbated by the reality that these expenses trend 11.4 times higher than those associated with business operations. In other words, ignoring ESG imperatives directly threatens long-term resilience. Understanding Inconvenient Truths Amid our steep real-world challenges, there is a general consensus for enhanced sustainability efforts to address escalating global climate impact. However, business and government pledges to offset C02 emissions by nearly four gigatons by 2030 are falling short—by about 70%—of achieving the 1.5°C target set by the Paris Agreement. In recognizing these shortfalls, McKinsey Sustainability issued a leadership call to increased sustainable action: • Decarbonized Assets And Value Chains: Companies reducing costs and emissions can gain market share, providing financial support for carbon neutralization. • Climate Technologies, New Green Businesses: Demand for green technologies could generate up to $12 trillion annually by 2030 and facilitate innovations for a more affordable transition. Green transition funds, industrial venture capital and infrastructure growth funds could enable up to $3.5 trillion in annual financing by 2050. • Socio-Economic Implications, Net-Zero Transition Tools: Understanding affordable energy access, investment requirements, jobs impact, growth, competitiveness, lived environment and health can help leaders better define pathways forward. • Collaborative Efforts Against Environmental Threats: Public and private sectors, working with philanthropic organizations, can catalyze solutions. • Early Action: Pace-setters can help define nature-positive progress. These measures aren't only about mitigating harm; they're about embedding durability into the business model. ESG isn't charity—it's strategy. It's about safeguarding the future and adapting to what's already here. Refocusing Sustainability In my experience, staying grounded is important in a time when business leaders are being tugged between the hard financial realities of environmental fallout and the increasing number of legislative proposals that could restrict the use of ESG criteria in investments. While ESG filters provide an external benchmark, I believe that resilient governance requires business leaders to make a deeper commitment to stakeholders. Prioritizing sustainability—along with risk mitigation and cost-efficiency—can set companies apart and attract investors by bolstering regulatory compliance and contributing to long-term viability, flexibility and brand strength. Holding Vendors Accountable Addressing challenges with a balanced mindset is important, and I've found that authentic sustainability efforts can encourage consideration of market dynamics and lead to fair governance. For example, the supply chain is ripe with potential. According to CDP, only 37% of suppliers hold vendors accountable for emissions reduction. Buyers play an important role in fostering transparency and optimizing processes among suppliers, so by recognizing the cost risks associated with environmental impact, leaders can advocate for sustainability across their networks and spheres of influence. Resilience begins upstream. In my experience, when companies set clear expectations with partners and implement accountability mechanisms, they can reduce vulnerability to environmental, reputational and operational disruptions. Use Cases: Google And Walmart Google is at the forefront in adopting renewable energy for its data centers, meeting "67% of its data center electricity needs with renewable sources on an hourly basis" and even reaching about 90% in some facilities. Leveraging AI, they've pioneered cross-industry solutions, including the development of data center load shifting that optimizes energy-intensive tasks to bolster grid stability and align with abundant renewable energy periods. Tying its sustainability initiatives to emerging technologies, Walmart employed blockchain tools to empower real-time traceability of perishable food products along its supply chain, from producer to delivery dock. This provided improved pathways for identifying the sources of foodborne diseases while boosting the efficiency of food delivery and reducing waste—wins for both the bottom line and the environment. Frameworks For Sustainable Business In order to boost your company's financial viability while yielding external benefits, I believe it's important to go beyond mere compliance and align with fundamental sustainability principles. These principles can also increase your organization's ability to absorb shocks, respond quickly to change and seize new opportunities in uncertain markets. While each business approach will vary based on internal and external influences, here are three best practices for creating a unified framework that encompasses impactful sustainability programs: • Integrated Reporting: Combine your financial and nonfinancial information to offer a holistic view of the company's performance, emphasizing its impact on various capitals. • Sustainable Development: Align your strategies to the UN's Sustainable Development Goals to help address global challenges. • Triple Bottom Line: Expand your bottom line to include social and environmental components; this can help hold your company accountable far beyond financial performance. The pursuit of sound, broadly beneficial governance requires real and honest action. In many companies, earnings are the primary focus, which is why leading with strength, purpose and a low tolerance for rhetoric is important to delivering productive sustainability efforts. I believe that by keeping these factors in mind, leaders can steer their organizations on a clear path toward enhanced profitability, stronger resilience and meaningful contribution. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?