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Larry Fink isn't losing a lot of sleep over the debasement trade. The BlackRock CEO said he's still confident that US assets are the best place for investors to park their cash for at least the next 18 months. That's despite fears swirling around the debasement trade, which is the idea that investors are fleeing from dollar-denominated assets due to concerns that the US dollar is losing value, and that rising debt levels and deficit spending will broadly hurt fiat currencies. "Money is going to move around all the time. But I would say most global investors have a very large overweight in the US and I think that's going to be the best place to have your overweighting for at least the next 18 months," Fink said, speaking at a panel discussion in Saudi Arabia on Tuesday. There are a few reasons Fink thinks investors' focus should still be on US markets. First, the sell-off in US assets earlier this year has largely reversed. Investors fled US stocks and other dollar assets in early 2025 as concerns mounted over tariffs, America's credit rating, and the nation's growing debt balance. But that move has largely reversed in recent months, Fink said. Foreign demand for US assets saw a strong rebound in May and June despite net selling in April, analysis from Apollo Global Management showed. Related stories Business Insider tells the innovative stories you want to know Business Insider tells the innovative stories you want to know Meanwhile, other safe-haven alternatives to US assets, like gold, are retreating after a big rally that some observers say was largely driven by FOMO rather than fundamental fears about financial stability. Second, there's huge faith in the investment being poured into the US, Fink said. He pointed in particular to capital expenditures spending related to AI, tech, energy infrastructure, and data centers. Amazon, Meta, Microsoft, and Google — four of the biggest companies at the center of the artificial intelligence boom — could be on track to spend as much as $320 billion on capex this year, according to a Business Insider analysis of the companies' financial statements. "You're seeing all that happening more in the United States than most places in the world today," Fink said, attributing large investment to why the US GDP has outpaced European nations. Other market pros have expressed doubt over the debasement theory. JPMorgan, Morgan Stanley, and Apollo are among the top Wall Street forecasters that have been skeptical about the "sell America" narrative this year, thanks largely to the excitement for investment opportunities in the US.
