Wall Street veteran: “Dump everything you own in the U.S.”

Written by Frode Skar, Finance Journalist.

Wall Street veteran: “Dump everything you own in the U.S.”

One of Wall Street’s most seasoned macro investors has turned his back on American assets. After four decades in the financial markets, he believes the time has come to move capital out of the United States – and he has already done so himself.

Andy Constan exits U.S. investments completely

Founder and Chief Investment Officer Andy Constan of Damped Spring Advisors has spent 40 years on Wall Street, including time at Bridgewater Associates, the firm founded by hedge fund legend Ray Dalio.

Now his message is striking:

Dump everything you own in the U.S.

Constan began gradually reducing U.S. exposure early last year. By January, his long-only portfolio had completely exited American equities and bonds.

For global investors heavily weighted toward U.S. index funds, the question is uncomfortable: Have we become too dependent on American dominance?

Fifteen years of U.S. outperformance

Since the 2008 financial crisis, U.S. assets have dramatically outperformed the rest of the world.

U.S. equities led by mega-cap technology
U.S. Treasuries serving as a global safe haven
A structurally strong U.S. dollar

This dominance created a powerful feedback loop: capital flowed into the U.S. because it was outperforming, and it outperformed because capital kept flowing in.

But that may now be the risk.

When positioning becomes crowded, even a modest shift can trigger a broader capital rotation.

Higher rates abroad are changing the equation

According to Constan, the main driver behind his shift is the sharp rise in bond yields outside the United States.

Japanese, German and other non-U.S. sovereign yields have increased meaningfully. For the first time in years, investors can potentially earn attractive returns in foreign government bonds — particularly in a recession scenario.

He also highlights improved balance between equities and fixed income markets in countries such as Canada, the United Kingdom and Australia.

In his view, this creates:

More compelling risk-adjusted returns outside the U.S.
Diversification benefits that were absent for years
The possibility of a weaker dollar if capital flows reverse

That last point could be decisive. If global investors begin reallocating away from the U.S., the dollar may face structural pressure.

Policy uncertainty in Washington

Constan also points to political factors. He admits he previously believed he understood what President Donald Trump was attempting to accomplish by reducing and restructuring government operations.

Now, he says, the picture appears less clear.

He argues current policy appears more focused on supporting equity markets than on structural reform. Importantly, he emphasizes this is neither anti-Trump nor anti-American.

“It’s simply that opportunities are now better elsewhere — something that hasn’t been true for 15 years,” he suggests.

From a macro perspective, capital tends to seek clarity and predictability. If investors perceive stronger policy frameworks abroad, capital may gradually follow.

Is a global capital rotation underway?

Ray Dalio has previously warned about growing financial fragmentation and the risk of capital conflict in a shifting global order.

Constan’s move may represent early positioning for a broader rotation.

If global asset managers begin to:

Reduce overweight positions in U.S. equities
Lower dollar exposure
Increase allocations to Europe, Asia and commodity-linked economies

we could see the end of a 15-year U.S.-led cycle.

These transitions rarely happen overnight. But when sentiment shifts, flows can accelerate quickly.

What does this mean for investors?

For most private investors, “dump everything” is rarely a prudent strategy.

However, the message from a four-decade Wall Street veteran cannot be ignored.

Key questions to consider:

Is your portfolio overly concentrated in U.S. equities?
Are you consciously managing dollar exposure?
Are foreign bonds and equities now offering superior risk-adjusted returns?

The issue is not whether the U.S. economy collapses. The issue is relative performance.

Markets move in cycles. Periods of dominance eventually give way to rebalancing.

Conclusion

When a macro investor with 40 years of experience and a background at Bridgewater exits U.S. markets entirely, it signals a potential structural shift.

It does not mean America is finished.
It may mean that the risk–reward balance is changing.

For global investors, this is a moment to reassess diversification, currency exposure and geographic concentration.

Fifteen years of U.S. exceptionalism may not define the next fifteen.