In the second quarter of 2025, investors have been withdrawing from US long-term government and corporate bond funds at the fastest rate since the 2020 crisis, with net outflows reaching $11 billion, marking the highest level in five years amid growing concerns over US debt. Concurrently, Bank of America clients reduced their exposure to US equities, pulling $1.3 billion from stocks last week, the largest outflow in 10 weeks, despite the S&P 500 closing June at a record high and achieving its best quarter since 2023. This selling pressure involved institutions, hedge funds, and retail investors. Additionally, foreign investors have been diversifying away from US stocks, withdrawing approximately $5 billion from US equity ETFs over the past month, the largest outflow in at least three years, reversing a similar inflow of $5 billion in May. Institutional investors have sold $2.3 billion in US equities in the past week alone, marking sales in eight of the last nine weeks, even as retail investors continue to buy.