Wall Street Bleeds as Tariff Whiplash Sparks Record Capital Flight

Trade war tremors send investors scrambling—$9.2B evaporates in a week as DC’s tariff tantrums trigger algorithmic panic.

Goldman’s ’risk management’ bots now just auto-dumping US assets between martini lunches.

In contrast to the US, riskier assets seem to be gaining traction. The crypto market alone saw a $2.3 billion inflow last week, while high-yield bonds attracted $3.9 billion. However, more traditional assets like gold and US Treasuries saw significant withdrawals, totaling $6 billion, as investors appear to be adjusting their strategies in favor of higher-risk opportunities.

Additionally, BofA notes that concerns over deflation are now more pronounced than inflation among its clients. In response, many have reallocated their portfolios toward safer, more stable investments, such as utility stocks and low-volatility, high-dividend exchange-traded funds (ETFs).

Earlier this year, BofA’s market experts cautioned that the US stock market’s recent rebound might be short-lived. They advised investors to take advantage of market rallies by reducing exposure to US stocks and the US dollar, suggesting that the ongoing decline of the dollar presents a prime opportunity for alternative investments.