Massive Foreign Capital Exodus from U.S. Markets Raises Alarms

Veteran investor Jeffrey Gundlach is signaling a major turning point in global capital flows, suggesting that the era of U.S. market dominance may be drawing to a close.

In a recent CNBC interview, the DoubleLine Capital CEO pointed to a sharp change in international investor behavior. For nearly two decades, foreign capital poured into U.S. markets at unprecedented levels. But now, Gundlach says, the tide is turning — and Europe appears to be the new beneficiary.

Gundlach noted that foreign holdings in American financial markets swelled from around $3 trillion to as much as $28 trillion over the past 18 years. That enthusiasm, however, may be fading. “The data suggests foreign investors are pulling back from U.S. assets and rotating into European equities — especially when priced in local currency,” he explained.

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According to Gundlach, investors who positioned themselves in Europe and held assets in euros are already seeing solid gains — not just from equity performance but also from favorable currency movements. He emphasized that this trade is only beginning to unfold and may offer more upside ahead.

The broader message from Gundlach is clear: U.S. exceptionalism in financial markets might be giving way to a more balanced global landscape — one where Europe could increasingly lead the charge.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.