Introduces topic: China advising banks to limit US Treasury exposure and guest's FT op-ed arguing foreign investors are still pouring money into US assets.
speaker1
Ruchir Sharma
Central banks globally are diversifying out of US Treasuries and dollars, principally into gold. However, total foreign portfolio flows (stocks, corporate bonds) into the US hit a record $1.6T in 2025, debunking the 'sell America' myth.
Acknowledges the strong US investment story (AI, productivity, capex) but notes the US dollar is down significantly.
speaker1
Ruchir Sharma
The real risk for America is the dollar. Despite record inflows, US markets underperformed global peers last year. The US runs a $1.3T current account deficit financed by $1.6T of 'hot money' portfolio inflows.