COMMENT | Why US no longer feels like a safe bet

COMMENT | Something unusual is happening in global markets. Investors are no longer just reacting to interest rates or economic data. They are reacting to politics.

In recent days, a wave of selling has swept across American assets, from the US dollar to Wall Street stocks and even US government bonds. This phenomenon is now widely referred to as the “Sell America” trade.

At its core, this is about confidence. When investors lose confidence in a country’s leadership, policy direction and global role, they reduce exposure. That is exactly what is unfolding now.

Rising geopolitical tension and aggressive trade signals from Washington have unsettled markets that once treated American assets as the safest place to park money.

The latest trigger came from renewed tariff threats and confrontational foreign policy rhetoric, including pressure on long-standing allies in Europe.

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