Traders are seen at their desks inside the New York Stock Exchange in New York City on April 7, 2025. Photo: Brendan McDermid, Reuters.
British investors heavily bought U.S. stocks just before a surprise move from former President Donald Trump shook global markets. According to new data from Calastone, UK buyers poured £1.8 billion (about $2.3 billion) into North American equity funds in March, marking it as one of the most active months for such investments in the past decade.
This sudden spike in interest came ahead of Trump’s announcement of new trade tariffs that caused markets to plunge. The buying trend was likely fueled by a mix of optimism and timing—many UK investors were trying to take advantage of stock price dips earlier in the year, believing the U.S. market would bounce back.
March also traditionally sees increased investment activity in the UK. As the British tax year ends on April 5, many people move money into investment funds to make the most of tax benefits. This seasonal push may have added to the rush into U.S.-focused stocks.
Edward Glyn, head of global markets at Calastone, noted how this move into American equities contrasted with broader global trends. While many large investors were shifting funds from U.S. markets into European and British assets, individual UK investors seemed to go against the tide by doubling down on U.S. stocks.
Before the tariff news, American shares had already been under pressure since the start of the year. However, the situation worsened after Trump’s policy announcement, leading to a sharp fall in prices. Despite that, many retail investors didn’t back off. On the contrary, they took the dip as a buying opportunity. According to JPMorgan, individual investors spent $4.7 billion on U.S. stocks last Thursday alone—the highest amount in ten years.
Calastone’s data also showed an unusual spike in trading volume for American stocks, with both buyers and sellers far more active than usual. This kind of volatility signals that investors are deeply divided over what lies ahead for the U.S. market. In recent years, American stocks have performed better than many of their global counterparts, but growing uncertainty seems to be shaking that confidence.
Interestingly, while UK investors were loading up on U.S. equities, they were pulling money from their own local stock market. A net £1.2 billion was withdrawn from UK equity funds in March, suggesting doubts about home-grown opportunities.
Bond funds also suffered, with UK investors taking out £700 million during the month. On the other hand, money market funds—typically seen as safer places to park cash—attracted £513 million in new investments.
As global markets continue to react to policy shifts and economic signals, UK investors appear to be taking bold steps—some seeking safety, while others continue betting on a U.S. recovery.
