Foreign securities investors are flooding the US stock market with unprecedented amounts, according to analysts at the capital markets newspaper The Kobeissi Letter.
Foreign purchases of U.S. stocks rose $35.2 billion month-over-month in May to $121 billion, the second-highest increase on record. reports Kobeissi’s letter, with details from Reuters.
“Everybody wants US stocks.”
This is the second consecutive monthly increase. Foreign investors bought about $270 billion of US stocks during the year. Monthly inflows are expected to reach $130 billion in November 2024.
In contrast, foreign investors recorded large outflows from South Korean and Taiwanese stocks during the same period.
“Foreign investors lost $31 billion and $28 billion of South Korean stocks in June and May, respectively, the two largest monthly outflows. In addition, foreign investors also sold $18 billion of Taiwanese stocks in June, the second-largest sale.
Such purchases from abroad pose a strong threat to US stock prices and currencies.
The upcoming data shows strong global confidence in American companies despite a changing domestic market.
Analysts see the data as a major indicator of global appetite for US goods.
Global capital continues to favor US corporations over other markets.
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