Investors Trim Dollar Overweights as Trade Tensions Ease, Goldman Sachs Reports

Goldman Sachs observes a measured retreat from extreme dollar positions rather than a wholesale exodus. Investors are shedding excess dollar holdings accumulated during earlier market stress, according to the bank’s global head of client strategy.

The recalibration follows April’s tariff shocks, when President Trump’s trade actions triggered rapid capital flight from US assets. While subsequent WHITE House deals have stabilized markets, the episode forced a reassessment of concentrated dollar bets that had reached 30% above normal allocations.

"This isn’t abandonment—it’s lightening up," the executive told Reuters, noting most institutional portfolios remain structurally overweight US assets. The rebalancing reflects prudence rather than pessimism, with markets digesting the reality that trade conflicts create volatility even when ultimately resolved.