Wall Street Shifts Capital from US to Europe Amid Policy Uncertainty
Wall Street’s wealthiest investors are executing a strategic pivot from US assets to European markets, signaling a sustained retreat rather than a fleeting reaction. The Financial Times reports this capital migration stems from deteriorating confidence in Washington’s policymaking, Federal Reserve leadership turbulence, and escalating trade tensions under the TRUMP administration.
Despite brief equity rebounds following Trump’s tariff announcements, US markets continue to underperform global counterparts. The dollar’s 7% depreciation since January has traders monitoring potential capital flight toward European SAFE havens like German bunds. European equities now absorb investment flows as US ETFs experience outflows.