The great “sell America” trade? Not so fast
For all the hand-wringing about global investors ditching U.S. stocks, the money flow data is telling a very different story: they’re still buying. Hard.
Foreign investors have snapped up a net $270 billion in U.S. equities year to date, and May’s $121 billion inflow was the second-largest monthly record. That’s not exactly the behavior of a crowd heading for the exits.
Why the money keeps landing in the U.S.
So why does the U.S. keep winning the capital beauty contest? A few familiar reasons keep showing up:
- Liquidity: U.S. markets are deep, fast, and easy to trade.
- Tech gravity: The biggest names in AI and software still live here.
- Earnings muscle: Investors keep chasing the growth that’s actually showing up in profits.
Meanwhile, South Korea and Taiwan have seen record foreign outflows, which underscores the same old market truth: capital likes the biggest spotlight, and right now that spotlight is still on America.
What investors should take away
This isn’t just a trivia stat. Persistent foreign buying can help support U.S. equity valuations, especially in mega-cap tech and AI-linked names that already dominate index performance.
Big picture: the “everyone is leaving U.S. stocks” narrative makes for a dramatic headline, but the cash keeps voting the other way.