Bank of America: Trade War Impacting "American Exceptionalism," Global Share of U.S. Stocks Plummeting

The strategist of Bank of America stated that, as doubts about the so-called "American exceptionalism" were raised due to the trade war, the proportion of global stock market funds flowing into the United States will greatly decrease by 2025. The Bank of America team, citing data from EPFR Global in a report, said that so far this year, US stock funds have attracted less than half of the global fund inflows, compared to 72% in 2024. In the past three months, foreign fund inflows have slowed to less than $2 billion, compared to $34 billion in January of this year. Trump's unstable trade policy, expanding fiscal deficit, and depreciating dollar have dampened investors' enthusiasm for US assets. Some asset management companies have warned that, due to the political risks brought about by the Trump administration, the United States is no longer a safe destination for foreign investors.