Trillions on hold — investors are withdrawing funds from the US

Global financial markets are in a period of unprecedented caution. Tens of trillions of dollars remain uninvested, sitting in bank accounts and money market funds. The main reasons for this are the uncertainty caused by trade wars, the growing US deficit, and geopolitical risks. Investors are gradually withdrawing capital from the United States and directing it toward Europe, India, Japan, and Persian Gulf countries.

Larry Fink, CEO of BlackRock Investment Company, made this statement at the Saudi-American Investment Forum in Riyadh, according to Reuters.

"There is 12 trillion euros sitting in bank accounts in Europe. In the United States, there's $11 trillion sitting in money markets funds. When there is uncertainty, you are going to keep more and more money in cash and that is what we witnessed," Fink told delegates.

Loss of confidence in the US: capital outflows have already begun

As Washington engages in trade wars and struggles with mounting deficits, global investors are shifting their focus. There has been a gradual but clear shift in capital toward Europe, India, Japan, and the Gulf countries. The reason is obvious: strategic uncertainty in the United States is prompting investors to seek more stable regions.

"I think we are going to be in a period of uncertainty, and we are going to start focusing on the role of deficits, which are not part of any conversations. Let's be clear, the US deficits are an issue," Fink stressed.

This is more than just a short-term pause in investment. Rather, it is a sign of long-term, structural changes to the global economy. Investors are becoming more cautious, and cash is a symbol of this shift.

Trump, deficits, and recession risks

Donald Trump's visit to the Persian Gulf, as well as previous statements by the White House, did little to reduce market anxiety. Trade wars with China have been suspended, but not ended. The level of US public debt is rising, and prospects for economic growth are looking increasingly doubtful.

BlackRock CEO Larry Fink bluntly states that to avoid an aggravation of the situation, the United States must maintain growth at a level of at least 3%. If this does not happen, the consequences could be worse than a temporary halt in investment.

"I do believe what President Trump is trying to do is consistent with what the kingdom has been trying to do, they are trying to create more public-private investing," Fink said.

In his turn, Blackstone CEO Stephen Schwarzman, who also spoke at the forum, emphasized the importance of patience in implementing large-scale economic changes.

"You are going to accomplish a lot of these things but like all great visions some of them wont happen and you can't get discouraged because that is nature of major change," he said at the event.

What is awaiting the markets

According to Fink, the coming months will be a period of heightened uncertainty.

"We are entering another 90 days of uncertainty," he warned.

This reflects investor sentiment, as they are increasingly adopting a wait-and-see approach. At the same time, the redistribution of capital to other regions could create new opportunities for economic growth in Europe, Asia, and the Middle East.

This global shift could also be significant for Ukraine. Although direct investment in Ukraine has been limited due to the war, stabilizing European markets and growing interest in other regions may attract capital in the future, particularly for post-war reconstruction efforts.

Previously, it was reported that in April 2025, the number of global mergers and acquisitions (M&A) deals fell to its lowest level in two decades, with only 2,330 transactions, the worst since February 2005. 

As a reminder, Novyny.LIVE shared a guide to investments in 2025 — review on the cryptocurrencies, stocks, and real estate markets.