Overseas private investors are flooding US equity markets with unprecedented capital, according to analysts at the capital markets newsletter The Kobeissi Letter.
Foreign private sector net purchases of US stocks rose $35.2 billion month-over-month in May to reach $121 billion, the second-largest inflow on record, reports The Kobeissi Letter, citing data from Reuters.
“Everyone wants US stocks.”
This marks the second consecutive monthly increase. Year-to-date foreign private investors have purchased approximately $270 billion of US stocks. The record monthly inflow stands at around $130 billion in November 2024.
In contrast, foreign investors recorded large outflows from South Korean and Taiwanese stocks during the same period.
“Foreign investors dumped -$31 billion and -$28 billion of South Korean stocks in June and May, respectively, the two largest monthly outflows on record. Furthermore, foreign investors also sold -$18 billion of Taiwanese stocks in June, the 2nd-largest sale on record. Global capital continues to favor US equities over the rest of the world.”
Such sustained buying from abroad provides a powerful tailwind for US stock prices and liquidity.
The inflows demonstrate strong global confidence in American companies despite domestic market swings.
Analysts view the data as a key indicator of international appetite for US assets.
Global capital continues to favor US equities over other markets.
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