Quick Read – Foreign investors bought a net $270 billion in U.S. equities year-to-date, with May’s $121 billion inflow ranking as the second-largest monthly record. – South Korea and Taiwan posted record foreign outflows while global capital concentrated in U.S. liquidity,…
chnology, and AI-driven earnings growth. – For much of this year, the narrative surrounding U.S. markets seemed settled. Higher tariffs, strained diplomatic relationships, and political uncertainty were supposed to convince overseas investors to look elsewhere
Headlines warned that global capital was rotating into Europe and Asia while America’s dominance faded. Yet investing has a habit of exposing popular narratives that don’t survive contact with the data. The latest capital flow figures suggest the world’s biggest investors continue to vote with their wallets, and they are still choosing the U.S. over virtually every other equity market.
The Money Tells a Different Story According to Reuters, foreign private investors purchased a net $121 billion of U.S. stocks in May, up $35.2 billion from April. That marks the second consecutive monthly increase and represents the second-largest monthly inflow on record. Only November 2024’s roughly $130 billion inflow ranks higher.