Rockefeller International’s Ruchir Sharma explains why 'sell America' narrative is a myth

Speakers

Ruchir Sharma — Chairman, Rockefeller International

Summary

Despite reports of China and other central banks limiting exposure to US Treasuries, foreign portfolio flows (stocks/bonds) into the US hit a record $1.6 trillion in 2025.
The "Sell America" narrative is technically a myth regarding inflows; foreigners criticize US policy by day but buy US stocks by night.
However, a structural shift is occurring: "American Exceptionalism" is ending. Despite record inflows, US markets underperformed global markets last year.
The US faces a precarious "hot money" risk: The $1.3 trillion current account deficit is entirely financed by volatile portfolio flows ($1.6 trillion), leaving the dollar and assets vulnerable if confidence shifts.

Trade Ideas

Ticker	Direction	Speaker	Thesis	Time
US TREASURIES /GOLD	LONG	Ruchir Sharma Chairman, Rockefeller International	Central banks globally are actively diversifying away from US Treasuries and the US Dollar. While private investors are buying stocks, sovereign entities (Central Banks) are moving reserves into hard assets like Gold to reduce reliance on the US financial system. Sharma confirms central banks are "principally buying gold" while cutting Treasury exposure. A reversal in geopolitical tensions or higher real yields on Treasuries could make bonds attractive again.	0:58
US DOLLAR	WATCH	Ruchir Sharma Chairman, Rockefeller International	The US Dollar is down nearly 2% to start the year and fell over 9% last year, signaling structural weakness. The US is running a massive current account deficit ($1.3 trillion) that is being plugged by "hot money" (portfolio investments of $1.6 trillion). If foreign investor sentiment wavers, the funding for this deficit dries up, pressuring the currency further. Pronounced declines in the currency over the last 12+ months despite the AI and productivity narrative. A "flight to safety" event usually boosts the USD regardless of fundamentals.	0:56
NON-US MARKETS	LONG	Ruchir Sharma Chairman, Rockefeller International	The era of "American Exceptionalism"—where the US is the only investable market—has come to an end. Despite massive foreign inflows into the US, American markets actually underperformed the rest of the world last year. This divergence suggests better value and momentum exist outside the US. Global markets outperformed the US (which was up ~18%) despite the US receiving record capital inflows. A global recession would likely hurt emerging/international markets more than the US defensive trade.	—