Investors are increasingly shifting their capital from American stocks to European equities, marking the fastest pace of such a transition in 25 years. This trend is largely attributed to concerns regarding the potential impact of Donald Trump's policies on the U.S. economy. Recent data indicates that net inflows to the largest European exchange-traded funds (ETFs) have surged to approximately $200 billion, representing the highest levels seen in years. In contrast, inflows into U.S. markets have sharply slowed, with foreign ownership of the U.S. equity market now standing at around 20% of the total $90 trillion market. Analysts have raised alarms about the risks associated with foreign pullbacks from the S&P 500, particularly as the dollar continues to decline and the valuation of major tech stocks, referred to as the 'Magnificent 7', remains high. Experts suggest that the combination of these factors poses a downside risk to the S&P 500 as foreign investors may begin to sell off their U.S. holdings.