Foreign private investors purchased $121 billion in US stocks in May, marking the second-largest monthly inflow on record, according to The Kobeissi Letter citing Reuters data. The purchases rose $35.2 billion month-over-month and reflect strong global confidence in American companies despite domestic market swings. This marks the second consecutive monthly increase, with year-to-date foreign private sector purchases reaching approximately $270 billion, while the record monthly inflow stands at around $130 billion in November 2024.
Foreign Private Investors Purchase $121 Billion in US Stocks in May
Overseas private investors are flooding US equity markets with unprecedented capital. 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.
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. The sustained buying from abroad provides a powerful tailwind for US stock prices and liquidity.
South Korean and Taiwanese Stocks Record Large Outflows
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.
Foreign investors also sold $18 billion of Taiwanese stocks in June, the second-largest sale on record. The contrast between US inflows and Asian outflows demonstrates shifting global capital allocation patterns.
Global Capital Favors US Equities Over Other Markets
Global capital continues to favor US equities over the rest of the world. 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.
Such sustained buying from abroad provides a powerful tailwind for US stock prices and liquidity. The data shows that everyone wants US stocks, according to The Kobeissi Letter.
FAQ
What did foreign private investors purchase in US stocks in May?
Foreign private investors purchased $121 billion in US stocks in May, marking the second-largest monthly inflow on record according to The Kobeissi Letter citing Reuters data.
How much have foreign investors purchased in US stocks year-to-date?
Year-to-date foreign private investors have purchased approximately $270 billion of US stocks, with the record monthly inflow standing at around $130 billion in November 2024.
What happened to 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), and sold $18 billion of Taiwanese stocks in June (the second-largest sale on record).
