Bloomberg Businessweek ICYMI: Asia's 'Sell America' Moment Puts $7.5T at Risk
May 29, 2025
Liz McCormick, Bloomberg News Chief Correspondent for Global Macro Markets, delves into the shifting landscape of Asian investments. She reveals how Asian investors are reconsidering their reliance on U.S. assets due to worries about the budget deficit and political polarization. With $7.5 trillion at stake, this trend could benefit emerging markets and strengthen Asian currencies. McCormick also discusses the changing dynamics of capital flows and the implications for U.S. Treasury demand amid evolving economic pressures.
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Asia Rethinks US Investment
- Asian investors are rethinking investing in US assets due to concerns like the US budget deficit and political polarization.
- This marks a major shift from the traditional model of selling goods to the US and investing the proceeds there.
Policy Fuels Investment Shift
- The Trump administration's trade policies and focus on manufacturing reshaped currency and investment trends.
- The weakening dollar and rising Asian currencies fuel the reconsideration of investing in US assets.
Beneficiaries Outside US Rise
- Emerging markets, Europe, and Japan stand to benefit from a shift of investments away from the US.
- Capital flow reductions into the US reflect an effort to reduce the trade deficit, changing the traditional balance.