U.S. Sell-Off Fears Overblown: European Investors Still View U.S. Assets Attractively

Investor sentiment toward selling U.S. assets has been exaggerated despite headlines linking Trump’s tariffs and Greenland remarks to heightened geopolitical tension. In January 2026, flows toward U.S. equities, Treasuries, and the dollar were pressured by trade frictions with the EU and other regions. However, Alpine Macro strategist Dan Alamariu argues coordinated, large-scale divestment is neither practical nor likely. Geopolitical headwinds have self-limiting properties, and investors typically discount such risks over time as tensions ease. Data shows European investors remained a key buyer of U.S. government debt in 2025, and while China’s directive to scale back U.S. Treasuries may raise short-term volatility, long-term U.S. innovation and technological leadership are likely to sustain investor interest. A genuine risk emerges only if the U.S. market underperforms amid a major geopolitical shock within the next 12 months, prompting broader reallocation.