Foreign investors have been rapidly selling off U.S. stocks, marking the third-largest withdrawal in history last week, according to Bank of America. Over $5 billion in net outflows were recorded from U.S. stock funds, a pace only surpassed by the 2020 crash and the March 2023 banking crisis. This significant sell-off comes amidst a record $18 trillion in foreign capital that has flowed into U.S. equities over the last five years, representing about 60% of the U.S. GDP. Deutsche Bank has warned that foreign selling could reach up to one trillion dollars, which is significantly larger than the demand from corporate buyers. The U.S. stock market has been underperforming compared to other markets, with investors increasingly looking abroad. Hedge funds have notably shifted their exposure from U.S. stocks to European stocks, which have outperformed the U.S. by 20 percentage points since mid-November. This shift marks the most significant outperformance since the dot-com bubble burst. Amidst these developments, economic indicators suggest a potential slowdown in U.S. economic growth, which could further impact investor sentiment and lead to a decline in the S&P 500 by over 10%. Last week, the S&P 500 fell by 2.2%, the Nasdaq by 2.3%, the Dow Jones by 3.0%, and the Russell 2000 by 1.6%. Meanwhile, gold rose by 2.6% and Bitcoin fell by 2.1%.