Wall Street investment bank Goldman Sachs (GS) says foreign investors have sold a net $63 billion of U.S. stocks since the start of March when the current tariff turmoil began.
Data from Goldman Sachs shows that the majority of selling has come from Europe, while other regions of the world such as Asia and South America have continued to buy U.S. equities. “This dynamic poses a substantial risk to equity valuations because foreign investors entered 2025 with a record 18% ownership share of U.S. equities,” wrote Goldman analyst Daniel Chavez in a note to clients.
Chavez adds that, since 1980, there have been 10 other instances of substantial selling of U.S. stocks by foreign investors, with sales reaching as much as $300 billion in the most extreme cases. However, Goldman says that the most recent episode of foreign selling “has been shorter and shallower than the average experience during the last few decades.”
Foreign Outflows
The Wall Street firm also notes that foreign outflows from U.S. stocks haven’t always been a bad thing for the market. In the past, U.S. stocks were able to withstand foreign outflows, rising during seven out of 10 occasions with 1987, 1990 and 2022 being the lone exceptions when markets sank as foreign investors were net sellers of American equities.
News of the foreign sales of U.S. stocks comes on a day when Bank of America (BAC) is urging investors to stay out of the market for the time being, noting that sentiment remains fragile and that share prices are likely to move lower as the full impact of President Donald Trump’s trade tariffs on companies and the American economy becomes clear.
Is GS Stock a Buy?
Goldman Sachs stock has a consensus Moderate Buy rating among 14 Wall Street analysts. That rating is based on seven Buy and seven Hold recommendations assigned in the last three months. The average GS price target of $607.50 implies 11.52% upside from current levels.
