Donald Trump’s “America first” agenda has not translated into unwavering investor confidence in US assets.
Instead, aggressive trade policy, geopolitical tensions and fiscal uncertainty have fuelled a relative “sell America” rotation, with several non-US markets and sectors outperforming US equities over the past year.
Market participants say the shift is not about abandoning the US entirely, but about diversification. Commodities, emerging markets and UK investment trusts are increasingly viewed as beneficiaries of capital being reallocated away from crowded US growth trades.
Annabel Brodie-Smith, communications director at the Association of Investment Companies, said investors were spreading risk across both growth assets and safe havens.
She noted that while strong earnings growth and AI-related spending continued to support US equities, European markets enjoyed their best year since 2021 as investors sought better value.
Emerging markets also benefited from a weaker dollar and increased capital inflows, while UK large and mid-cap equities were boosted by exposure to commodities, banking and defence.
Jason Hollands, managing director at Bestinvest, said confidence in the US as a trade partner, military ally and financial safe haven had been tested, prompting institutional investors to diversify away from US assets.
He said precious metals had been key beneficiaries, supported by central banks diversifying reserves away from US Treasuries.
Despite recent volatility, gold and silver remain positive year to date, supporting mining-focused trusts such as BlackRock World Mining.
Hollands added that a weaker dollar acts as a stimulus for Asia and emerging markets by easing the burden of dollar-denominated debt.
He highlighted Ashoka WhiteOak Emerging Markets and Templeton Emerging Markets Investment Trust as beneficiaries.
Tom Poynton, executive director at Baron & Grant, said the biggest investment opportunity had come from policy unpredictability rather than any single decision.
He pointed to strong performance from precious metals trusts such as Golden Prospect Precious Metals and CQS Natural Resources Growth & Income, while cautioning that mining equities remain cyclical and volatile.
Beyond metals, energy security was emerging as a structural theme. Poynton highlighted Geiger Counter as a higher-risk way to gain exposure to uranium, reflecting renewed government support for nuclear power.
Dan Boardman-Weston, chief executive of BRI Wealth Management, said that while the US remains too large to ignore, UK equities offer compelling diversification.
Despite strong FTSE 100 performance, UK small and mid-caps continue to lag, creating opportunities in trusts such as The Mercantile Investment Trust, with higher-risk exposure available via Aurora UK Alpha.
Is “Sell America” the right framing?
Poynton said the phrase should be viewed as a relative shift rather than an outright call. UK and European markets offer more attractive valuations, stronger income characteristics and greater exposure to value-style companies.
Trusts positioned for this rotation include Temple Bar Investment Trust, Fidelity Special Values and Murray International Trust.
Hollands added that Europe and Japan also deserve attention. He highlighted Fidelity European Trust and JPMorgan Japanese Investment Trust, citing easing inflation, governance reform and exposure to automation and robotics.
Tomiko Evans, chief investment officer at Crossing Point Investment Management, said defence and strategic security had shifted from cyclical to structural priorities.
She and Poynton highlighted Seraphim Space Investment Trust as a differentiated way to access defence-related spending, with exposure to satellite communications, imagery and intelligence rather than traditional weapons manufacturers.
Evans added that dollar weakness has reduced sterling-based returns from US equities, while supporting UK and European markets.
She said UK investment trusts trading on low valuations and offering strong income, including City of London Investment Trust and Lowland Investment Company, are well positioned if the trend persists.
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