Wall St Investors Squabble Over "Sell America" Strategy

There is conflict among Wall Street analysts over the right strategy for dealing with U.S. dollar–denominated assets.

Various sectors of the economy have suffered recessions even though the economy as a whole has held up—may be coming to an end.

PIMCO Chief Investment Officer Dan Ivascyn has advised investors to diversify out of U.S. assets because Trump is unpredictable.

Analysts at ING have been pushing a “sell America” argument, noting that the 9% decline in the value of the dollar over 12 months has imposed a harsh loss on those who bought U.S. assets, Jim Edwards reported for Fortune.

However, recent data suggest the tide may be turning against the “sell America” crowd.

The S&P 500 ticked up 0.26%, and futures were up 0.36% this morning. While one day’s trading is not significant on its own, the S&P is now up 1.45% year-to-date—a solid pace over a short period.

More importantly, the U.S. government released its most recent Treasury International Capital (TIC) data for November, showing net foreign inflows into U.S. assets of all kinds totaled $212 billion.

“That’s a lot,” said ING’s Chris Turner.

“The main takeaway is that foreigners continue to pour money into U.S. asset markets. The TIC release is volatile, but looking at the rolling 12-month average, in November the net foreign purchase of U.S. assets was around $100 billion per month—compared to roughly $25 billion in the summer of 2024.”

Ark Invest’s Cathie Wood suggested in a new commentary that her “rolling recession” theory—which posits that various sectors of the economy have suffered recessions even though the economy as a whole has held up—may be coming to an end.

The U.S. “has evolved into a coiled spring that could bounce back powerfully during the next few years,” she said.