John Waldron, President of Goldman Sachs Bank, stated that the recent retreat of some investors from dollar-denominated assets reflects their return to more balanced investment positions, instead of the "rush to margins" that prevailed during a previous period.
Waldron explained that investors who increased their dollar holdings by between 10% and 30% above their natural levels are now starting to return to more neutral positions, following a series of trade tensions between the United States and its partners.
He confirmed that the recent movements in the markets do not reflect a mass exodus from the U.S. dollar, but rather a natural reallocation of investment portfolios, given the economic and political volatility. He noted that investors have been seeing a clear superiority of the U.S. over other economies, which prompted them to increase their exposure to U.S. assets.
Despite these movements, Waldron stated that Goldman Sachs has not yet noticed any general trend towards significantly reducing dollar holdings, affirming that the fluctuations in U.S. policies have not reached levels that would provoke a mass flight.
Waldron also emphasized the continued demand for Chinese assets, despite the political tensions between Washington and Beijing, pointing out that American companies are still able to operate in China, saying: "American companies are doing well despite the challenges, and we do not see significant effects on our ability to operate there."
It is worth noting that the financial markets have witnessed clear fluctuations since the beginning of the Trump administration, especially after his decision on April 2 to raise tariffs on imports from certain countries. This decision has led some investors to lessen their exposure to U.S. assets, but progress in trade negotiations has partially restored confidence.
