Bank of America: The trade war hits American exceptionalism, and the share of global funds in U.S. stocks drops sharply

Odaily News Strategists at Bank of America said the share of global stock market funds flowing into the United States fell sharply in 2025 as the trade war raised questions about the so-called American exceptionalism. U.S. stock funds have attracted less than half of global inflows so far this year, compared with 72% in 2024, the Bank of America team said in a report, citing data from EPFR Global. Foreign inflows slowed to less than $2 billion in the past three months, compared with $34 billion in January this year. Trumps erratic trade policies, ballooning fiscal deficits and a depreciating dollar have dampened investor enthusiasm for U.S. assets. Some asset managers have warned that the United States is no longer a safe investment destination for foreign investors due to the political risks posed by the Trump administration. (Jinshi)