Global demand for US stocks is actually on the up

Given the outperformance of many major European and Asian equity markets over Wall Street this year, it might appear that foreign investors are turning sour on US equities.

- Jamie McGeever

But that's not the case. Not only are overseas private sector inflows into US stocks running at record levels, they have re-accelerated in recent months. The big question now is whether this can be sustained next year.

The latest official Treasury International Capital data which comes with a lag but is the gold standard for measuring overseas appetite for US assets shows that net purchases of US stocks from foreign private sector investors in the 12 months through September totalled US$646.7 billion (20.6 trillion baht).

Indeed, TIC data shows that inflows from abroad have been breaking records by this measure almost every month this year, having smashed through the previous peak of $392 billion, from 2021, in January.

That rolling 12-month figure is partially boosted by strong inflows around the 2024 US presidential election.

Monthly net purchases of US stocks from foreign private sector investors rarely exceed $100 billion, but they did in September and November last year as investors hoovered up stocks in the belief that an incoming Trump administration would pursue an unabashedly pro-growth, "market-friendly" agenda of slashing taxes and regulation.