The ‘Sell America’ trade is back for 2026 and will remain a prominent feature of the rest of this year, the CEO of financial advisory giant deVere Group has warned.
A series of events combine to force many traders to reconsider their US positions as precious metals are at record levels, the US dollar is weakening, and equity benchmarks are showing increasing volatility.
Nigel Green warned that sell-side sentiment has shifted rapidly on the back of legal, monetary, geopolitical and trade developments that are altering how risks and returns are being priced.
He said that markets are sending clear signals about confidence in governance, policy and strategic direction.
“Investors are adjusting portfolios because the institutional framework that underpins confidence in US assets has encountered multiple, simultaneous stress points. It’s observable in market behaviour, from metals to currency to equities.”
Federal Reserve and institutional pressure
One key trigger has been the unprecedented legal escalation involving the Federal Reserve.
The Department of Justice issued subpoenas last week relating to Chair Jerome Powell’s congressional testimony about the central bank’s Washington headquarters renovation, and warned of possible criminal charges. Powell has labelled the threat a tactic intended to influence monetary policy.
Financial markets reacted swiftly. Gold climbed to a fresh record above $4,600 an ounce, while silver set new highs, as traders increased allocations to traditional hedges. Concurrently, the DXY dollar index weakened broadly against other major currencies and stock futures experienced significant swings.
“Heavy pressure on the independence of the central bank of the world’s largest economy’s central bank can change expectations for interest rates, inflation and, ultimately, investor returns across asset classes,” explained the deVere CEO.
Venezuela, Iran and the return of geopolitical risk pricing
This monetary confidence shock has intersected with geopolitical developments that have broadened the global risk conversation.
Earlier this month, the US launched a military intervention in Venezuela that resulted in the capture and indictment of President Nicolás Maduro, an action that has drawn international debate and could have ramifications for regional stability.
At the same time, escalating tension around Iran, including renewed sanctions pressure, domestic unrest and rising security risks around key shipping routes, has added another layer of uncertainty for energy markets and global risk assets.
Greenland and rising strategic tension
At the same time, discussions in Washington about Greenland’s strategic importance are increasing tensions with European allies.
While not a new issue, the prominence of the topic in foreign policy debates has underscored uncertainty in transatlantic economic cooperation.
“Geopolitical shifts matter when they’re viewed through the lens of trade, resource security and diplomatic stability,” Green commented.
“As strategic intent appears unsettled or contested, capital seeks clarity and diversification.”
Supreme Court uncertainty over trade powers
Legal uncertainty around US trade policy is also influencing market decisions. Traders are closely watching forthcoming decisions by the Supreme Court on the legality of Trump’s sweeping tariffs imposed last year.
On Wednesday, the Justices declined to pass a ruling.
Analysts see this judicial review as another vector of uncertainty for corporate planning and cross-border commerce.
“A legal silence on trade authority affects both confidence in global agreements and the cost of doing business internationally,” explained the deVere founder and chief executive.
“When the rules governing trade are subject to legal challenge, it prompts reassessment of long-term exposure to US markets.”
Earnings misses and valuation pressure
Earnings trends in early 2026 are reinforcing reallocations. While the US remains a critical engine of global earnings, some major sectors, including banking, have reported performance that fall short relative to international peers, particularly in regions where growth momentum is improving off more attractive valuations.
Market data show that some major US averages have experienced back-to-back declines recently as traders position ahead of key earnings releases.
“The link between earnings and capital allocation has returned as a driver of price as key players in Corporate America have come in below expectations this week,” Green said.
He added that the confluence of these forces is no longer peripheral, but central to how global portfolios are being structured.
“Precious metals rallying to records and the US dollar weakening are symptomatic of a broader risk repricing. Meanwhile, equities are no longer viewed in isolation, but in the context of policy risk, legal ambiguity and geopolitical strategy.”
The deVere CEO concluded that, “markets aren’t walking away from the US economy. But they’re appearing to make a disciplined adjustment.
“We expect the pricing of that balance will help define global portfolio allocation through the rest of 2026.”
