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

Report: Bank of America strategists say that as the trade war raises doubts about the "American exceptionalism" theory, the proportion of global stock market funds flowing into the United States will significantly decline in 2025. The Bank of America team cited EPFR Global data, stating that so far this year, US stock funds have attracted less than half of global capital inflows, compared to 72% in 2024. In the past three months, foreign capital inflows have slowed to less than $2 billion, compared to $34 billion in January. Trump's unstable trade policies, continuously expanding fiscal deficit, and depreciating US dollar have dampened investors' enthusiasm for US assets. Some asset management companies warn that due to political risks brought by the Trump administration, the United States is no longer a safe investment destination for foreign investors. (Jintian)