Foreign investors have been withdrawing from U.S. equities and Treasuries at notable levels in recent months. Since the start of March 2025, overseas investors sold $63 billion worth of U.S. stocks, marking the highest outflow in over a year, with European investors responsible for the majority of these sales. In April, U.S. stock funds experienced over $7 billion in net outflows from foreign investors, the second-largest withdrawal historically. Japanese private institutions notably sold $20.1 billion of long-dated U.S. Treasury bonds in the two weeks ending April 11, the largest such sale on record. Despite these foreign sell-offs, retail investors in the U.S. have been actively buying stocks and ETFs, with retail purchases reaching approximately $40 billion in April alone and over $120 billion year-to-date. Retail investors' net buying of S&P 500 single stocks hit around $12 billion in April, the highest in more than a year, with consistent daily buying since the market peak in February. Conversely, institutional investors have been net sellers, offloading nearly $30 billion of U.S. stock ETFs year-to-date. Hedge funds also increased short positions on U.S. ETFs last month at a record pace. Analysis suggests that China's holdings of U.S. Treasuries have not structurally declined despite appearances, as much of its portfolio is held offshore. However, some selling of U.S. Treasuries appears to be occurring, likely by foreign investors such as Japan. Overall, the data indicate a divergence between foreign and domestic investor behavior in U.S. equity and Treasury markets during early 2025.