Sell America trade spreads as dollar falls and U.S. markets stall

Investors are increasingly souring on the United States, a shift dubbed the "sell America" trade that has spread through global markets at the start of 2026 and is linked to a weaker dollar, a stalled U.S. stock market and rising government borrowing costs. The sentiment gained traction after the shock of sky-high tariffs last April and has accelerated amid policies that worry investors, including attacks on the Federal Reserve’s independence and threats of a new trade war with Europe, the article says.

Lauren Goodwin of New York Life Investments said at a recent meeting that "Our European colleagues were frankly stunned by the openness that U.S. investors have to diversify away from the U.S." The shift has had measurable market effects: the dollar ended the month 1.2 percent lower after a second straight week of losses and is roughly 10 percent lower over the past 12 months against a basket of major currencies, the article reports.

Precious metals have surged — gold and silver hit record highs, rising 24 and 19 percent respectively for January — and the piece notes both that the price of gold is 75 percent higher over the past 12 months and elsewhere that its value has "roughly doubled." U.S. equities have plateaued in dollar terms since the start of the year and begun to slide when measured in other currencies.

The 10-year U.S. Treasury yield has risen to 4.25 percent from less than 4 percent in October, a move the article says is equivalent to a standard Fed rate hike.

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