Foreign Investors Defy Tariffs and 'Sell America' Narrative with Record US Stock Purchases

The year 2025 saw a significant surge in foreign investment in the US, with foreign investors buying a record amount of US stocks and assets. Despite the imposition of tariffs by President Trump and a prevailing "Sell America" narrative, foreign investors defied expectations and poured a net $1.6 trillion into US assets, led by demand for stocks and US Treasuries.

According to data, foreign investors bought more than twice the amount of US stocks in 2025 as they did a year before, with purchases jumping 134% from the previous year. This surge in foreign investment is a sharp rebuttal of the "Sell America" narrative that had become a regular feature of discussion among market participants.

The increase in foreign investment in US stocks was driven by a number of factors, including the attractive valuations of US equities and the strong performance of the US economy. Despite the tariffs imposed by President Trump, foreign investors remained confident in the US economy and saw opportunities for growth and returns.

The data also showed that foreign investors were not just buying US stocks, but also US Treasuries. This suggests that foreign investors are looking for safe-haven assets and are willing to invest in the US despite the prevailing narrative.

The surge in foreign investment in US assets is a significant development, as it suggests that foreign investors are looking beyond the short-term noise and focusing on the long-term fundamentals of the US economy. This is a positive sign for the US economy, as foreign investment can provide a boost to economic growth and help to create jobs.

It's worth noting that the increase in foreign investment in US assets is not limited to just stocks and Treasuries. Foreign investors are also investing in other US assets, such as real estate and private equity.

The "Sell America" narrative had gained traction in recent years, with some market participants arguing that the US economy was due for a downturn and that investors should sell their US assets. However, the data suggests that foreign investors are not buying into this narrative and are instead looking for opportunities to invest in the US.

In conclusion, the surge in foreign investment in US assets is a significant development that suggests continued confidence in the US economy. Despite the tariffs and the "Sell America" narrative, foreign investors are looking beyond the short-term noise and focusing on the long-term fundamentals of the US economy. This is a positive sign for the US economy, and suggests that foreign investment can provide a boost to economic growth and help to create jobs.

Sources:
* Foreign Buying of US Stocks Jumps 134% in 2025 Despite Tariffs
* Foreigners Rebuff ‘Sell America’ and Buy a Net $1.6 Trillion in Assets